Forklift News - RENTAL GIANTS CALL OFF BUYOUT TALKS

MIAMI, USA -- Forklift and equipment rental giants United Rentals Inc and Neff Corporation have ended talks that would have led to United Rentals taking control of Neff.

United Rentals submitted an informal proposal to Neff on January 2 to acquire more than 70% of the equity in Neff, and about 80% of voting rights, for US$314 million, including US$37 million in United Rentals common stock.

But the talks ended on February 26, a week after United Rentals extended its proposal. United Rentals announced it would not extend the deadline past the close of business on February 26.

Neff president and chief executive officer Pete Gladis said the company would stop looking for strategic alliances.

"Neff management will now focus on increasing shareholder value by increasing the company's return on assets and strengthening the balance sheet," Mr Gladis said.

"The company is concluding its ... search for strategic alternatives and will seek to improve shareholder value from its existing operations."

The Neff-United proposal would have been supported by all principal Neff stockholders, including GE Capital Corporation, which would have purchased newly issued United Rentals stock to retain their investments.

United Rentals claims to be North America's largest equipment rental company, with 740 locations in 47 states, Canada and Mexico. United Rentals has more than 500,000 machines in more than 600 machine types, including aerial high reach equipment, forklifts, industrial equipment and heavy machinery.

Based in Miami, Florida, Neff Corp is the seventh-largest equipment rental company in the US, with 83 locations in 17 states, and annual revenue of about US$260 million. Neff hires and sells forklifts and other industrial equipment on behalf of MQ, Walker, IR, JLG and Gradall.

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