RPT-Cerberus may pull United Rentals offer - sources

Wed Nov 14, 2007 10:06am EST
 
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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.

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)

 

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