08.06.2008

United to take $14 million hit

United Rentals, the world’s largest rental company has filed documents stating that it will book a $14 million charge in the second quarter, in order to cover the expected cost of the ongoing Securities and Exchange Commission investigation.

The investigation which has been ongoing since 2004, concerns a number of sale and leaseback transactions aimed to inflate the company’s results during the period 2000 to 2002.

Two senior executives were dismissed and face personal penalties form the SEC, Michael Nolan the former chief financial officer, has already pleaded guilty to filing false documents.

Former chief executive John Milne has been indicted for securities fraud and insider trading.

The $14 million is United’s best estimate of the liability associated with the investigation.