(Bloomberg) – H&E Equipment Services has its earlier agreement with United Rentals Inc. Tied up to a higher range of Herc Holdings Inc. to be accepted, a statement from Herc confirmed Tuesday.
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The proposal of Herc for a cash and share deal with a value of $ 104.89 per share represents a premium of 14% in the earlier agreement with United Rentals, according to the statement. United Rentals was planning to buy H&E for $ 92 per share in cash.
United Rentals, after H&E is aware of a higher bid, has left the plan to acquire the supplier of the rival construction equipment that refused to increase his original offer, according to a separate statement on Tuesday. H&E is obliged to pay a fee of $ 63.5 million if it terminates the agreement, said United Rentals.
Shares of Herc fell 7.7%on Tuesday. H&E shares rose by 15%, while the shares of United Rentals fell by 2.8%.
H&E hires and sells equipment for purposes such as airwork, grounding and material treatment. Herc offers comparable equipment for rent. Herc said that the acquisition will expand its footprint in important regions.
The Financial Times reported earlier that H&E had accepted an offer from Herc that the company appreciated at nearly $ 5.3 billion, including $ 1.4 billion in net debt. That cash-and-stock offer H&E at around $ 500 million more than the United Rentals deal.
(Updates with Herc statement from the first paragraph)
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