Delaware court rules in favor of Cerberus affiliate in United Rentals lawsuit

By Lisa Kerner

Charlotte, N.C., Dec. 21 - The Delaware Court of Chancery ruled in favor of RAM Holdings, Inc. and RAM Acquisition Corp., affiliates of Cerberus Capital Management, LP, in the litigation brought by United Rentals, Inc.

"The decision validates the Cerberus affiliates' specifically negotiated ability to refrain from proceeding with the proposed transaction," Cerberus said in a statement released on Friday.

"We regret the negative comments that were directed at us by United Rentals and are pleased that the court chose to decide the case on the merits and confirm that Cerberus acted in accordance with its rights and obligations," the statement said.

On Nov. 19, United Rentals initiated litigation to compel RAM to complete its purchase of United Rentals, it was previously reported.

Cerberus had filed suit seeking a declaratory judgment against United Rentals. At issue was the $100 million liability cap, which Cerberus said it is entitled to under the merger agreement, and United Rentals' right to compel the merger to go forward.

Cerberus agreed in July to acquire United Rentals for $34.50 cash per share. United Rentals shareholders approved the merger deal at a special meeting on Oct. 19.

United Rentals is a Greenwich, Conn., equipment rental company with a network of 690 rental locations in 48 states, 10 Canadian provinces and Mexico.

Cerberus is a private investment firm based in New York.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.