Ceva makes offer to buy US based EGL

Ceva Logistics says it has made an offer to buy US-based Eagle Global Logistics (EGL) for $1.8bn in order to boost its global scale and product offerings.

If the deal goes through the former TNT Logistics, which was sold to Apollo Management in August 2006, hopes to have completed the merger by the summer. Ceva says it intends to retain EGL's Houston headquarters and use the American company's operations as a base to expand its own business.

The offer represents a premium of more than 13% over EGL's calculated $38 per share.

EGL confirms it received a written proposal from Apollo Management, dated 19 March, expressing its interest to buy the company. It says it has "made arrangements so that Apollo may conduct its due diligence investigation with respect to its proposal."

A statement from EGL continues: "There can be no assurance that Apollo or another third party will make a firm offer."

Industry analysts have previously cast doubt on Ceva CEO Dave Kulik's indications that he was in the market to buy a freight forwarding operation, pointing to the "heavy debt" TNT Logistics was saddled with following its sale to Apollo for E1.48bn.