United Rentals Commences Modified Dutch Auction Tender Offer
Published June 18th, 2008
United Rentals, Inc. has announced that it has commenced a “modified Dutch auction” tender offer in which the company is offering to purchase up to 27,160,000 shares of its common stock at a price not less than $22.00 nor greater than $25.00 per share. The company had previously announced on June 10, 2008 its intent to conduct the tender offer.
The number of shares of common stock sought to be repurchased in the tender offer represents approximately 31% of the total number of shares of common stock outstanding. The low and high ends of the $22.00 to $25.00 per share price range represent a 12.8% and 28.2% premium, respectively, to United Rentals’ closing price of $19.50 on June 9, 2008, the day immediately prior to the company’s announcement of its intent to conduct the tender offer. If the maximum number of shares is purchased at the high end of the price range, the total purchase price for the common stock would be $679 million.
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