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United Rentals Terminates Takeover by Cerberus

Equipment rental group United Rentals said it terminated its $4 billion takeover by Cerberus Capital Management and asked Cerberus to pay it a $100 million termination fee.

On Dec 21, a court denied United Rentals' ability to force Cerberus to complete the takeover. United Rentals said it will not be appealing the Delaware Chancery Court opinion.

The $100 million fee is payable within two days of termination, United Rentals said.

Cerberus was not immediately available for comment.

Cerberus agreed to buy United Rentals for $34.50 a share in late July but United Rentals said on Nov 14 that Cerberus had pulled its offer.

Cerberus cited uncertainty in the credit and financing markets. The deal's collapse is just one of several leveraged buyouts that have failed in recent weeks as buyers face difficulty getting funding.

United Rentals also said it was terminating previously announced debt tender offers being made by wholly owned subsidiary United Rentals (North America) Inc.