The battle for control of EGL has gone to the brink, with today, Wednesday 16 May, being the deadline for bids for the Texas based forwarder. The two rival bidders for the company upped their offers over the weekend, with Crane and his backers replying to CEVA's opening bid of $43 with a counter-offer of $45 a share. CEVA then replied the next day with a $46 offer. Both offers are cash-only bids.
As things stand, CEVA's bid, valuing the company at $1.89bn is likely to be accepted as the 'special committee' of EGL's directors have stated its preference for the Dutch based logistics company's higher offer.
However James Crane, the CEO, founder of EGL and owner of around 18% of the company, made a previous agreement with the other directors of the company. James Crane and his private equity backers will be entitled to a $30million 'termination' fee if the 'Special Committee' decides not to accept Crane's offer.
Crane's earlier disagreements with the other Directors over the bid may weigh against him. Initially Crane bid $36 a share six months ago. However Mr Crane has shown himself to be quite determined to regain control of the company and he appears to have the backing of EGL's senior management as well as his own private equity consortium.
CEVA is owned by the private equity company Apollo. Registered in London, CEVA is headquartered in Amsterdam, near its former parent TNT Group. Whether EGL's headquarter functions in Houston Texas will move or be reduced in size is unknown.
EGL shares have soared in value over the past several months, from a $28 to just under $46 at close of play 15th May.
