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Cerberus agrees to pay United Rentals $100 million after deal falls through

Cerberus agrees to pay United Rentals $100 million after deal falls through

Cerberus Capital Management L.P. agreed Monday to pay United Rentals Inc. a $100 million (euro69.4 million) breakup fee for dropping its $4 billion (euro2.78 billion) purchase of the equipment-rental company.
Cerberus agreed to pay the fee after a Delaware court ruled the private equity firm was allowed to scrap the takeover, which it abandoned last month.
Greenwich-based United Rentals had asked the Delaware Court of Chancery to force Cerberus to complete the takeover.
But Court Chancellor William B. Chandler III ruled against United Rentals Friday, the two companies said.
United Rentals, which rents equipment ranging from heavy machines to hand tools, has decided not to appeal the ruling, but requested that Cerberus pay the termination fee required by the merger agreement, it said Monday.
Cerberus said it agreed with the fee.
United Rentals' shares rose 79 cents, or 4.4 percent, to $18.70 Monday. They fell $3.69, or 17 percent, on Friday.


Updated : 2021-05-09 14:59 GMT+08:00