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Bonds News

Cerberus to buy United Rentals for $4 billion

(Adds NEW YORK dateline, details; changes headline)

NEW YORK, July 23 (Reuters) - Equipment rental company United Rentals Inc. URI.N said on Monday it had accepted a $4 billion takeover bid from affiliates of Cerberus Capital Management LP [CBS.UL], while still considering other offers.

The deal is worth $34.50 per share, which represents a 6.6 percent premium to the company’s closing price on Friday. It also includes $2.6 billion in debt, bringing the total value to $6.6 billion.

Under the terms of the deal with the private equity fund, United Rentals may continue to solicit bids from third parties through Aug. 31.

United Rentals, which says it is the largest equipment rental company in the world, said the deal price represented a 25 percent premium over the price of its stock on April 10, the day it said it was exploring options.

United Rentals’ board of directors has approved the takeover, which still requires shareholder approval.

(Reporting by Martinne Geller in New York and Deepti Chaudhary in Bangalore)

((Editing by Lisa Von Ahn; Reuters Messaging: deepti.chaudhary.reuters.com@reuters.net; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800))

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