Apollo Management portfolio company CEVA Logistics has increased its bid for Houston-based EGL to $1.95 billion (€1.4 billion), or $46 per share, from it previous offer of $1.8 billion, or $43 per share.
It’s the latest round in an ongoing bidding war for the transport and logistics firm.
A rival consortium – led by EGL’s largest shareholder, chief executive and chairman, James Crane, and backed by Centerbridge Capital Partners and The Woodbridge Company – raised its bid to $45 per share last week in response to Apollo’s previous offer, which EGL’s board deemed superior.
The Crane-led group’s $38 per share bid was approved by EGL’s board in March. Apollo contested the agreed deal, alleging it had been shut out of a sham bidding process fixed to favour the CEO.
In an attempt to block the sale, Apollo not only raised its bid but filed a lawsuit against the firm, Crane, and several executives – an action it said was unprecedented in its nearly 20 year history.
EGL’s board has found Apollo’s latest offer to be superior to the offer from the Crane group, which now has until 16 May to offer a revised bid.
Apollo, currently investing its sixth, $12 billion fund, wants to expand CEVA’s operations by combing them with EGL’s.