EGL Surges on Buyout Offer
Freight forwarding and logistics company EGL (EAGL) received a $36-a-share buyout offer from Chairman and CEO James Crane and private equity firm General Atlantic.
The price represents a 21% premium over EGL's closing price of $29.78 Friday. Shares of the Houston-based company recently were trading at $37.26, suggesting that investors are looking for a higher bid.
EGL said its board has formed a special committee to review the proposal, and said no decisions have been made about its response to the offer.
Crane, who currently owns 18% of EGL, said he would continue as chairman and CEO should the deal transpire. In his letter to EGL's board, Crane said he has received "highly confident" letters from funding sources regarding the ability to raise $1.125 billion of financing necessary for the deal.Crane would be the majority owner of EGL, with about a 51% stake in the company.
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