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.

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