United Rentals seeks judgment in Cerberus case

By Megan Davies and Michael Flaherty

NEW YORK (Reuters) - United Rentals Inc (URI.N) has asked a judge to order private equity firm Cerberus Capital Management CBS.UL to complete its $4 billion takeover of the equipment rental company, the latest step in a lawsuit filed earlier this month.

United Rentals filed a motion in a Delaware court on Thursday requesting summary judgment, according to court documents.

The company is taking the action against "RAM," the Cerberus acquisition vehicle for the deal.

"RAM's decision to back out of the agreement is nothing more than a naked ploy to extract a lower price to the irreparable harm of URI's stockholders," the document says.

Cerberus withdrew its $34.50-per-share takeover offer for United Rentals earlier this month.

United Rentals filed suit in the Delaware Court of Chancery, seeking to force Cerberus to complete the deal.

Cerberus later filed suit in New York State Supreme Court, seeking "to ensure that United Rentals honors" undertakings made at the time of the deal. The buyout firm says the original agreement caps its liability at $100 million.

Cerberus, responding to the request for summary judgment, said on Friday that United Rentals had surrendered any right to seek "equitable relief, including specific performance."

The "specific performance" clause in the merger agreement is central to the legal dispute. United Rentals says the clause does not allow Cerberus to terminate the agreement and gives United Rentals the right to have the deal enforced.

Cerberus says it is liable only for a $100 million break-up fee and associated costs.

"We are confident that United Rentals' motion will be defeated and look forward to an expedited trial," Cerberus said.

United Rentals shares were up 76 cents, or 3.4 percent, to $23 in midday trade on the New York Stock Exchange.

(Reporting by Michael Flaherty and Megan Davies; editing by John Wallace)