11.12.2007

SuttonBrook buys into United Rentals

New York investment firm SuttonBrook Capital Management has reported that it has acquired a 5.83 percent stake in equipment rental company United Rentals.

It would appear that the company has purchased 4.65 million shares in United - worth $111 million – on the open market following the announcement on November 14th of the break-down in the $7 billion acquisition of United by Cerberus Capital Management.
See United sues Cerebus
SuttonBrook said it may hold discussions with United Rentals, other shareholders or potential acquirers of the company regarding a possible merger, reorganization or liquidation of the company, a sale of assets, material changes to the company's business structure, or changes in the board of directors, among other considerations.

RAM Holdings Inc and RAM Acquisition Corp - subsidiaries of private equity firm Cerberus Capital Management LP - backed out of their planned $4 billion acquisition of United Rentals. United Rentals subsequently filed a lawsuit to force Cerberus to complete the deal, worth about $7 billion including the assumption of debt.