Looks as if Jim Crane’s proposed private equity-backed buyout of EGL is on the rocks already. That news probably makes Ben Stein happy, but what about EGL shareholders?
Crane commented that he will resubmit another bid, but the market certainly didn’t receive his first with gusto. After an initial run-up in price upon the announcement of the proposed buyout, the stock is now trading at close to its 52-week low. Interestingly, Crane’s failed offer — something that folks such as Stein would make illegal — may end up inducing more bidders to get into play for EGL than otherwise would be the case, thus increasing EGL’s value for shareholders. Stay tuned.