United Rentals, RAM Holdings litigation to go to trial

By Lisa Kerner

Charlotte, N.C., Dec. 13 - United Rentals, Inc. said it looks forward to making a "compelling case" in the upcoming trial involving its lawsuit against RAM Holdings, Inc. and RAM Acquisition Corp. in the Delaware Court of Chancery.

RAM, in a statement issued on Thursday, said it also looks forward to presenting its case at trial.

On Nov. 19, United Rentals initiated litigation to compel RAM, a Cerberus Capital Management, LP affiliate, to complete its purchase of United Rentals, according to a company news release.

"The trial presents an important opportunity to establish that the merger agreement should be enforced as written," United Rentals said in the release. The company added that it has fulfilled its obligations under the merger agreement and is ready to complete the merger on the agreed-upon terms.

Cerberus had filed suit seeking a declaratory judgment against United Rentals. At issue is the $100 million liability cap and United Rentals' right to compel the merger to go forward.

As previously reported, Cerberus agreed in July to acquire United Rentals for $34.50 cash per share. United Rentals shareholders approved the merger deal at a special meeting on Oct. 19.

United Rentals is a Greenwich, Conn., equipment rental company with a network of 690 rental locations in 48 states, 10 Canadian provinces and Mexico.

Cerberus is a private investment firm based in New York.

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