23.06.2008

Cerberus sued over United Rentals deal

Amida Capital Management II LLC has filed a complaint in the U.S. District Court in Manhattan claiming that Cerberus Capital Management “intentionally made deceptive and material misstatements regarding the positive effects of the merger on United Rentals common stock.”

Cerberus agreed to buy United Rentals, the worlds largest aerial lift owner, last July for $6.6 billion, A 25 percent premium over its market price at the time.

The company then pulled out of the deal causing United’s share price to collapse.

Amida is claiming that Cerberus' statements during this period led it to boost its holding in United from $3 million to over $17 million, after Cerberus announced in a road show, that it found its investment attractive in spite of the credit crisis and expected the deal to close as planned