Cerberus Buying United Rentals - TheStreet

Cerberus Buying United Rentals

The deal comes as the Chrysler debt sale looms.
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Private equity firm Cerberus agreed to buy United Rentals (URI) - Get Report for $34.50 a share, or $2.83 billion, in cash.

The deal offers shareholders of the Greenwich, Conn., equipment rental company a 7% premium to Friday's closing price and a 25% premium to its price before it announced in April that it would seek a buyer. The company said the deal is worth $6.6 billion, including the assumption of $2.6 billion worth of debt.

"We're pleased that our strategic alternatives process has resulted in this favorable agreement for our shareholders," said CEO Bradley Jacobs. "This transaction is a credit to the thousands of United Rentals employees who have created unmatched value in our industry. A decade ago we started United Rentals with little more than a concept and achieved industry leadership in just 13 months. Today we remain the preeminent equipment rental company in the world."

The news comes as Cerberus tries to sell a huge amount of debt tied to its acquisition of the Chrysler unit of

DaimlerChrysler

(DCX)

, just as investors whipsawed by the sharp decline of the subprime debt market are becoming more averse to the risks associated with junk bonds.