Apollo jumps into EGL stakes with $40-per-share bid

Apollo jumps into EGL stakes with $40-per-share bid A day after EGL Inc. accepted a $38-cash-per-share takeover offer from a consortium headed by Jim Crane, the logistics services provider's chairman and chief executive officer, the Houston company received an acquisition offer from Apollo Management L.P. for $40 per share.
   In August, Apollo bought out the logistics division of Dutch mail and logistics services provider TNT for $1.9 billion, similar to the amount the buyout firm is offering for EGL. Some analysts have suggested that the contract logistics provider, renamed CEVA Logistics, would need a freight forwarding division if it wanted to have total control of shipments and compete with global companies such as DHL, UPS and Deutsche Bahn’s Schenker group. Until now TNT Logistics-CEVA has purchased freight management services from other providers. CEVA Chief Executive David Kulik is advising Apollo on logistics matters, including expansion possibilities.
   Apollo’s late offer highlights the growing involvement of private equity firms in the logistics sector during the past two years as they discover the profit potential of non-asset based providers.
   EGL provides a broad range of third-party logistics services, but its core specialty is freight forwarding.
   The offer from Crane, who for months has been pursuing the acquisition of the company he runs, amounts to $1.7 billion. Investor group Centerbridge Partners is backing Crane’s bid.
   In a statement, EGL said its special committee of the board of directors is considering the alternative proposal.