Rental row grows
11 April 2008
Cerberus Capital Management and United Rentals, the world's largest construction equipment rental company, are suing each other over the break-down of their proposed acquisition deal.
Cerberus, which wants to back out of the US$7 billion (€ 4,7 billion) deal because of deteriorating credit markets, has filed a “request for declaratory judgement” with the New York Supreme Court to obtain legal backing for a US$ 100 million (€ 68 million) limitation in the damages that it will have to pay United.
United Rentals has already filed a lawsuit against the two acquisition vehicles created by Cerberus – RAM Holdings and RAM Acquisition Corp – seeking to compel Cerberus to complete the acquisition.