EGL Signs New Buyout Deal
Freight forwarding concern EGL (EAGL) agreed to go private in a $1.7 billion buyout led by its chief executive.
Under the deal, EGL shareholders will receive $38 a share, an 8.7% premium over Friday's closing price of $34.96. The price represents a 27% premium over EGL's closing price on Dec. 29, the last day before an initial buyout proposal was made.
Chairman and CEO James Crane and private equity firm General Atlantic originally offered to buy EGL for $36 a share. But that deal fell through in February after EGL posted weaker-than-expected fourth-quarter results, leading General Atlantic to pull out of the purchase.
Under the new agreement, Crane will team up with private equity firm Centerbridge Partners and Woodbridge Co., the investment vehicle for Canada's Thomson family. Crane, who founded EGL, owns 7.07 million of the company's shares.The transaction is expected to close in the second or third quarter. Shares of EGL recently were up $1.72, or 4.9%, to $36.68.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV