Thursday, December 13, 2007
Per the below -- Chancellor Chandler decided it was too ambiguous for a summary judgment trial. This is likely the right decision despite Cerberus being the bad guy here. More tomorrow.
Company Ready to Present Case to Compel Cerberus Acquisition Vehicles to Complete Transaction GREENWICH, Conn.--(BUSINESS WIRE)--December 13, 2007--
United Rentals, Inc. (NYSE: URI) today issued the following statement regarding the decision by Delaware Court of Chancery Chancellor William B. Chandler III to proceed with a trial in the litigation that United Rentals initiated on November 19, 2007 against RAM Holdings, Inc. and RAM Acquisition Corp. The lawsuit seeks to compel the RAM entities (which are acquisition vehicles formed by Stephen Feinberg's Cerberus Capital Management, L.P.) to complete their purchase of United Rentals. In a letter sent to counsel this afternoon, Chancellor Chandler wrote, "I have concluded that while the question is exceedingly close, summary judgment is not an effective vehicle for deciding the contract issues in dispute in this case." United Rentals said: "We look forward to making a compelling case at the upcoming trial. While we believed the case could be decided through summary judgment, we respect Chancellor Chandler's decision to give a matter of this magnitude a full trial before issuing his ruling. The trial presents an important opportunity to establish that the merger agreement should be enforced as written." United Rentals added that it has fulfilled all of its obligations under the merger agreement with the RAM entities and stands ready to complete the merger transaction on the agreed-upon terms.