After two months of haggling, CEVA has emerged the winner, and will acquire EGL for $2 million. The group led by EGL’s CEO Jim Crane takes home second prize – a $30 million fee to terminate its agreement to acquire the company.
Following the unanimous recommendation of EGL’s special committee, the company has signed a definitive merger agreement with CEVA.
CEVA will acquire EGL for approximately $2 billion, with EGL shareholders receiving $47.50 in cash for each share of EGL common stock they hold at the time of the merger.
EGL’s board of directors has approved the agreement and will recommend that EGL's shareholders approve the merger.
The CEVA-EGL combination will create the world's fourth largest integrated supply chain management company, with global capabilities in freight forwarding and contract logistics.
According to CEVA CEO Dave Kulik, EGL’s senior management team will be retained, and all existing EGL operations will remain unchanged following the merger.
The transaction is subject to regulatory approvals and the affirmative vote of the holders of a majority of EGL's outstanding shares. EGL and CEVA anticipate the transaction will close in the third quarter of 2007.
EGL has terminated its previous merger agreement with the group led by the company’s CEO and chairman of the board, James Crane, and has paid the Crane group a $30 million fee to terminate the agreement.
Crane, however, is not bowing out gracefully. CEVA has announced that Crane has made statements in an amendment to the Schedule 13D filed yesterday morning, alleging improper conduct on the part of EGL’s president & chief marketing officer, E. Joseph Bento, in the EGL sale process.
According to CEVA, Bento is a fifteen-year veteran of EGL with a distinguished track record of service to the company and is widely respected by his colleagues and by competitors in the industry. CEVA says that Crane’s allegations are untruthful and inaccurate.
The bidding war for EGL has been clouded by allegations and accusations. Two months ago, Apollo Management (CEVA is owned by Apollo affiliates) raised concerns about the integrity of the bidding process. Citing irregularities in the bidding process and abuse of influence by Jim Crane, Apollo took legal action.
Depending on how far Crane plans to take these latest allegations, we may not have heard the end of this transaction.
Following the unanimous recommendation of EGL’s special committee, the company has signed a definitive merger agreement with CEVA.
CEVA will acquire EGL for approximately $2 billion, with EGL shareholders receiving $47.50 in cash for each share of EGL common stock they hold at the time of the merger.
EGL’s board of directors has approved the agreement and will recommend that EGL's shareholders approve the merger.
The CEVA-EGL combination will create the world's fourth largest integrated supply chain management company, with global capabilities in freight forwarding and contract logistics.
According to CEVA CEO Dave Kulik, EGL’s senior management team will be retained, and all existing EGL operations will remain unchanged following the merger.
The transaction is subject to regulatory approvals and the affirmative vote of the holders of a majority of EGL's outstanding shares. EGL and CEVA anticipate the transaction will close in the third quarter of 2007.
EGL has terminated its previous merger agreement with the group led by the company’s CEO and chairman of the board, James Crane, and has paid the Crane group a $30 million fee to terminate the agreement.
Crane, however, is not bowing out gracefully. CEVA has announced that Crane has made statements in an amendment to the Schedule 13D filed yesterday morning, alleging improper conduct on the part of EGL’s president & chief marketing officer, E. Joseph Bento, in the EGL sale process.
According to CEVA, Bento is a fifteen-year veteran of EGL with a distinguished track record of service to the company and is widely respected by his colleagues and by competitors in the industry. CEVA says that Crane’s allegations are untruthful and inaccurate.
The bidding war for EGL has been clouded by allegations and accusations. Two months ago, Apollo Management (CEVA is owned by Apollo affiliates) raised concerns about the integrity of the bidding process. Citing irregularities in the bidding process and abuse of influence by Jim Crane, Apollo took legal action.
Depending on how far Crane plans to take these latest allegations, we may not have heard the end of this transaction.