United Rentals has received USD100 million after terminating a merger agreement with RAM Holdings Inc and RAM Acquisition Corp, Cerberus Capital Management LP's acquisition vehicles.
United Rentals sent Cerberus a notice of termination of its July 22, 2007, merger agreement and requested the private equity firm pay the termination fee outlined in the agreement.
Under the agreement, the fee is payable within two days of termination. A United Rentals spokesperson confirms the fee was paid on December 26.
The spokesperson says United Rentals' immediate need is to move forward and focus on its business.
"In light of Chancellor Chandler's December 21 opinion, the board of directors determined the company is best served by terminating the merger agreement and the constraints it imposes."
Delaware judge Chancellor William Chandler had ruled against United Rental's petition to force Cerberus to close the USD4 billion buyout.
United Rentals is also terminating previously announced debt tender offers and consent solicitations made by its subsidiary United Rentals (North America) Inc. Completion of the merger was a condition to consummating the offers.
United Rentals took Cerberus to court after the latter sought to repudiate the merger agreement
(Forkliftaction.com News #337