• Most Popular
  • Most Shared

RPT-Cerberus may pull United Rentals offer - sources

Wed Nov 14, 2007 10:06am EST

Stocks

   

NEW YORK, Nov 14 (Reuters) - Cerberus Capital Management is considering the withdrawal of its $4 billion offer for equipment rental company United Rentals Inc (URI.N), sources close to the deal said on Wednesday.

Stocks  |  Mergers & Acquisitions  |  Bonds

Cerberus is worried about the company's economic outlook, and investment banks funding the deal are struggling with selling the associated debt offering.

Cerberus is working with the board to come to terms on repricing the deal or reworking the debt offering, the sources said. But should the two sides be unable to come to terms, sources said, Cerberus is expected to pay a break-up fee and back out of the deal.

A Cerberus spokesman declined to comment. A United Rentals spokesman did not return multiple calls seeking comment. (Reporting by Michael Flaherty, editing by Gerald E. McCormick)

Stocks
Mergers & Acquisitions
Bonds


More from Reuters

Photo

Honda expands airbag recall as more Toyotas probed

TOKYO/DETROIT (Reuters) - Honda Motor Co said it would recall another 440,000 cars around the world for faulty airbags as rival Toyota Motor Corp faced further probes over its largest-ever safety crisis. | Video

» More Top News
A worker walks on steel frames at a construction site in central Beijing January 27, 2010. REUTERS/Loic Hofstedt
Analysis:

China's boom may lead to bust

The housing market is becoming the investment of choice for the Chinese, which is making policymakers very nervous.  Full Article 

China
A Greek flag at the Bank of Greece is seen near a statue of ancient philosopher Socrates in Athens February 5, 2010. REUTERS/Yiorgos Karahalis

Avoiding "another Greece"

Don't count on the euro zone growing anytime soon. Getting into the single-currency club will be tougher than ever.  Full Article 

Global Markets