United Rentals(URI Quote) filed a lawsuit against Cerberus Capital Management seeking to force the private-equity firm to follow through with its buyout of the rental-equipment company.
The suit comes after Cerberus said last week that it wanted to pay a $100 million break-up fee to end the deal, partly because of volatility in the credit markets. United Rentals has contended that there are no financing obstacles to the $7 billion buyout, nor any significant changes in its business.
United Rentals said Monday that RAM Holdings and RAM Acquisition, two acquisition vehicles formed by Cerberus, are violating the merger agreement and do not have the right to simply pay the break-fee and walk away from the deal.
The company called Cerberus' action a "naked ploy" to extract a lower price for the buyout. Cerberus said last week it was willing to negotiate a revised deal. ...
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