According to a Delaware court decision announced today, Greenwich, Conn.-based United Rentals will not be allowed to force Cerberus Capital Management, New York, N.Y., to complete its acquisition of the company.
The Delaware court stated that because United Rentals failed to meet its burden of demonstrating that the common understanding of the parties permitted specific performance of the merger agreement, the company's petition for specific performance was denied, according to an Associated Press article.
United Rentals released a statement that said it is disappointed by the decision, but thanked the court for its prompt review of the case. The statement continued: “The Board of Directors and management team of United Rentals will consider its alternatives under the circumstances and they continue to believe strongly in United Rentals' future prospects. We look forward to continuing to operate our business as a public enterprise and to executing a strategy to maximize value for our shareholders."
United Rentals shares dropped 17 percent to close at $17.91.