United Rentals Takes Cerberus to Court
Court Alerts
United Rentals filed a lawsuit against Cerberus Capital Management seeking to force the private-equity firm to follow through with its buyout of the rental-equipment company.
The suit comes after Cerberus said last week that it wanted to pay a $100 million break-up fee to end the deal, partly because of volatility in the credit markets. United Rentals has contended that there are no financing obstacles to the $7 billion buyout, nor any significant changes in its business.
United Rentals said Monday that RAM Holdings and RAM Acquisition, two acquisition vehicles formed by Cerberus, are violating the merger agreement and do not have the right to simply pay the break-fee and walk away from the deal.
The company called Cerberus' action a "naked ploy" to extract a lower price for the buyout. Cerberus said last week it was willing to negotiate a revised deal.
Through the lawsuit, filed in the Delaware Court of Chancery, United Rentals is seeking to consummate the merger agreement in accordance with its original terms.
With the suit, United Rentals joins Sallie Mae in launching a legal battle with its potential acquirers to force a buyout. Other companies, such as Harman and Acxiom, have seen their deals fall apart as turmoil in the credit markets affects private-equity firms' ability to raise financing.
Shares of United Rentals recently were down 37 cents, or 1.6%, to $23. The buyout had called for Cerberus to pay $34.50 a share for the company.
Related listings
-
CBS Asks Court to Dismiss Suit Filed by Rather
Court Alerts 11/17/2007CBS filed a motion yesterday seeking the dismissal of a lawsuit by Dan Rather, who says that the network violated his contract by giving him too little to do after it forced him off the evening news in 2005 and that its investigation of the news segm...
-
Court Rebukes Bush Fuel Economy Plan
Court Alerts 11/16/2007[##_1L|1144341155.jpg|width="100" height="106" alt=""|_##]A federal appeals court sharply rejected the Bush administration's new pollution standards 'for most sport utility vehicles, pickup trucks and vans and ordered regulators Thursday to draft a n...
-
Appeals court upholds convictions of Tyco executives
Court Alerts 11/16/2007[##_1L|1327262489.jpg|width="120" height="88" alt=""|_##]Their names became shorthand for corporate greed, but former Tyco International Ltd. executives L. Dennis Kozlowski and Mark Swartz have argued they were entitled to the money and perks they we...
Illinois Work Injury Lawyers – Krol, Bongiorno & Given, LTD.
Accidents in the workplace are often caused by unsafe work conditions arising from ignoring safety rules, overlooking maintenance or other negligence of those in management. While we are one of the largest firms in Illinois dedicated solely to the representation of injured workers, we pride ourselves on the personal, one-on-one approach we deliver to each client.
Work accidents can cause serious injuries and sometimes permanent damage. Some extremely serious work injuries can permanently hinder a person’s ability to get around and continue their daily duties. Factors that affect one’s quality of life such as place of work, relationships with friends and family, and social standing can all be taken away quickly by a work injury. Although, you may not be able to recover all of your losses, you may be entitled to compensation as a result of your work injury. Krol, Bongiorno & Given, LTD. provides informed advocacy in all kinds of workers’ compensation claims, including:
• Injuries to the back and neck, including severe spinal cord injuries
• Serious head injuries
• Heart problems resulting from workplace activities
• Injuries to the knees, elbows, shoulders and other joints
• Injuries caused by repetitive movements
For Illinois Workers’ Compensation claims, you will ALWAYS cheat yourself if you do not hire an experienced attorney. When you hire Krol, Bongiorno & Given, Ltd, you will have someone to guide you through the process, and when it is time to settle, we will add value to your case IN EXCESS of our fee. In the last few years, employers and insurance carriers have sought to advance the argument that when you settle a case without an attorney, your already low settlement should be further reduced by 20% so that you do not get a “windfall.” Representing yourself in Illinois is a lose-lose proposition.