Cerberus Wants to Renegotiate United Rentals Deal

An affiliate of Cerberus Capital Management said that it is trying to renegotiate its $4 billion offer for United Rentals, but the company is refusing to engage in discussions.

United Rentals said on Wednesday that Cerberus is backing out of the current $34.50 per share deal, which led to a 31 percent drop in its shares.

RAM Holdings, the Cerberus acquisition vehicle, said in a statement late last night that its liability is limited to the $100 million break-up fee. RAM cited "sustained volatility" in the credit markets as a reason for its concerns about the current offer.