Apollo Sues EGL Over Buyout Bid; Boosts Offer to $41 a Share
Apollo Management Group, which has bid to buy transportation firm EGL Inc., has sued EGL and its board to prevent EGL’s sale to a group of investors led by its chief executive officer, Bloomberg reported.
Apollo also boosted its offer by $1 a share to $41 to buy EGL, about a $1.9 billion offer, the Wall Street Journal reported Wednesday. Apollo last week made a $40 per-share bid to acquire EGL, which is higher than an earlier $38 per-share, $1.2 billion offer made by EGL CEO James Crane and several investment groups.
The suit claimed that EGL failed to consider Apollo’s $40 offer over the Crane-led proposal when Crane’s was accepted by EGL’s board on March 19, Bloomberg reported.
Crane’s offer is backed by Centerbridge Partners and Woodbridge Co. In January, he had proposed a $36 per-share acquisition to take EGL private, with different investor partners.
EGL, which operates under the name Eagle Global Logistics, is ranked No. 11 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
