EGL announced that the Special Committee of its Board of Directors has received a written proposal, dated March 19, 2007 from Apollo Management L.P. expressing its interest in the acquisition of EGL, Inc. for $40.00 per share, subject to certain conditions, including expedited confirmatory due diligence. The Special Committee determined that, under EGL’s Merger Agreement with an affiliate of James R. Crane, Apollo’s proposal is an alternative proposal. Accordingly, the Special Committee has also informed the Crane Affiliate of the existence of the proposal, and has made arrangements so that Apollo may conduct its due diligence investigation with respect to its proposal. The Special Committee cautions that there can be no assurance that Apollo or another third party will make a firm offer, or that the terms of any such offer received will be a superior proposal or will be consummated.

Apollo thought final bids were due on March 26 and hurried to submit its offer over the weekend when the company received news of the agreement with Crane, the memo says. Apollo said in the memo that its $40 per share bid expires on March 23.

EGL shares were up 5 percent on Monday, then jumped another 1 percent after the Reuters report about Apollo’s offer. The stock closed up 6.3 percent at $37.16.

New York-based Apollo, which owns supply chain management company CEVA Logistics, declined to comment. EGL did not return calls seeking comment. Deutsche Bank AG, EGL’s financial advisors, declined to comment.

Management-led buyout offers, or deals in which executives are among the buyers and plan to stay in control of the company, are on the upswing, fueled in part by the amount of private equity money available to invest alongside the deals.

Executives usually back such buyouts as a way to grow the business in private and focus on long-term goals, free of Wall Street’s short-term pressures. These deals also invite scrutiny because the company is pressed to evaluate the best offer, even as its management is the one presenting the bid.

cordingly, the Special Committee has also informed the Crane Affiliate of the existence of the proposal, and has made arrangements so that Apollo may conduct its due diligence investigation with respect to its proposal.The Special Committee cautions that there can be no assurance that Apollo or another third party will make a firm offer, or that the terms of any such offer received will be a superior proposal or will be consummated.Important Additional Information Regarding the merger will be Filed with the SEC:In connection with the proposed merger, the Company will file a proxy statement with the Securities and Exchange Commission.

Source: EGL pressrelease and realtime

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