The rental-equipment company said Monday that it has ended its acquisition agreement with Cerberus Capital Management and is requesting the prompt payment of the $100 million termination fee.
The move is of little surprise following a court ruling Friday that Cerberus is within its contractual rights to pull out of the deal. United Rentals had launched a legal battle after Cerberus, roiled by rockiness in the credit markets, said it no longer wanted to complete the buyout.
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"In light of Chancellor Chandler's December 21st opinion, the United Rentals Board of Directors has determined that the Company is best served by terminating the merger agreement and the constraints it imposes," United Rentals said in a statement. "We remain committed to enhancing shareholder value, and believe the immediate need is to move forward and focus our energies on our business."
The buyout deal, reached in July, called for Cerberus to pay $34.50 a share for United Rentals. The stock closed Friday at $17.91.