RENTAL SERVICE CORP
SC 14D1/A, 1999-05-14
EQUIPMENT RENTAL & LEASING, NEC
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                     SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, D.C. 20549
  
                               SCHEDULE 14D-1
                              AMENDMENT NO. 13
                           Tender Offer Statement
    Pursuant to Section 14(d)(1) of the Securities Exchange Act of 1934
  
                         RENTAL SERVICE CORPORATION
                         (Name of Subject Company)
  
                         UR ACQUISITION CORPORATION
                            UNITED RENTALS, INC.
                                 (Bidders)
  
                   COMMON STOCK, PAR VALUE $.01 PER SHARE
                       (Title of Class of Securities)
  
                                76009V 10 2
                   (CUSIP Number of Class of Securities)
  
                            UNITED RENTALS, INC.
                         FOUR GREENWICH OFFICE PARK
                            GREENWICH, CT 06830
                        ATTENTION: BRADLEY S. JACOBS
                         CHAIRMAN OF THE BOARD AND
                          CHIEF EXECUTIVE OFFICER
                         TELEPHONE: (203) 622-3131
                         FACSIMILE: (203) 622-6080
        (Name, Address and Telephone Number of Person authorized to
          Receive Notices and Communications on Behalf of Bidders)
  
                                  COPY TO:
  
                           MILTON G. STROM, ESQ.
                  SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP
                              919 THIRD AVENUE
                       NEW YORK, NEW YORK 10022-3897
                         TELEPHONE: (212) 735-3000
                         FACSIMILE: (212) 735-2000



      UR Acquisition Corporation, a Delaware corporation (the "Purchaser")
 and a wholly owned subsidiary of United Rentals, Inc., a Delaware
 corporation ("Parent"), and Parent hereby amend and supplement their Tender
 Offer Statement on Schedule 14D-1 (as amended from time to time, the
 "Schedule 14D-1"), filed with the Securities and Exchange Commission (the
 "Commission") on April 5, 1999, with respect to the Purchaser's offer to
 purchase all of the shares of common stock, par value $0.01 per share
 (collectively with the associated preferred stock purchase rights (the
 "Rights") issued pursuant to the  Rights Agreement, dated as of April 16,
 1999 (the "Rights Agreement"), between Rental Service Corporation and
 ChaseMellon Shareholder Services, L.L.C., the "Shares"), of Rental Service
 Corporation, a Delaware corporation (the "Company"),  at a price of $22.75
 per Share, net to the seller in cash (such price, or such higher price per
 Share as may be paid in the Offer, the "Offer Price"), upon the terms and
 subject to the conditions set forth in the Offer to Purchase and in the
 related Letter of Transmittal (which, as amended from time to time,
 together constitute the "Offer").  Unless otherwise indicated herein, each
 capitalized term used but not defined herein shall have the meaning
 ascribed to such term in the Schedule 14D-1 or in the Offer to Purchase
 referred to therein. 
  
 ITEM 10.  ADDITIONAL INFORMATION. 
  
      The information set forth in Item 10(e) of the Schedule 14D-1 is
 hereby amended and supplemented by the following information: 
  
      On May 11, 1999, NationsRent filed a motion for summary judgment (the
 "NationsRent Summary Judgment Motion") with respect to the litigation
 initiated by Parent and Purchaser in the Chancery Court of the State of
 Delaware (the "Delaware Court") on April 5, 1999.  The NationsRent Summary
 Judgment Motion attempts to dismiss Parent's and Purchaser's claims against
 NationsRent set forth in Parent's and Purchaser's first amended and
 supplemental complaint filed in the Delaware Court on May 10, 1999.  Parent
 believes the NationsRent Summary Judgment Motion is without merit and
 intends to vigorously defend against this action. 
  
      The text of the NationsRent Summary Judgment Motion, a copy of which
 is filed as Exhibit (g)(13) hereto, is incorporated by reference herein.
  
      On May 13, 1999, Parent and Purchaser filed a memorandum of law in
 opposition to the Company's motion for a preliminary injunction (the
 "Preliminary Injunction Opposition Motion") with respect to the Company's
 Clayton Act counterclaims in the litigation initiated by Parent and
 Purchaser in the United States District Court for the District of
 Connecticut (the "Connecticut Court").  In the Preliminary Injunction
 Opposition Motion, Parent states that the Connecticut Court should reject
 the Company's motion for a preliminary injunction because the Company
 cannot satisfy any of the standards required to be met for the issuance of
 a preliminary injunction. 
  
      The text of the Preliminary Injunction Opposition Motion, a copy of
 which is filed as Exhibit (g)(14) hereto, is incorporated by reference
 herein.
  
      The information set forth in Item 10(f) of the Schedule 14D-1 is
 hereby amended and supplemented by the following information: 
  
      On May 13, 1999, Parent commenced mailing its Consent Solicitation
 Statement to stockholders of record of the Company as of the close of
 business on May 13, 1999. 
  

      Unless otherwise indicated herein, each capitalized term used but not
 defined herein shall have the meaning ascribed to such term in the Schedule
 14D-1 or in the Offer to Purchase referred to therein. 
  
 ITEM 11.  MATERIALS TO BE FILED AS EXHIBITS. 
  
      (g)(13)        Motion for Summary Judgment, dated May 11, 1999, filed
                     by NationsRent in the Court of Chancery of the State of
                     Delaware. 
  
      (g)(14)        Memorandum of Law in Opposition to the Company's Motion
                     for a Preliminary Injunction, dated May 13, 1999, filed
                     by Parent and Purchaser in the United States District
                     Court for the District of Connecticut. 
  

                                 SIGNATURE
  
      After due inquiry and to the best of my knowledge and belief, I
 certify that the information set forth in this statement is true, complete
 and correct. 
  
                                UR Acquisition Corporation 
  

                                By: /s/ John N. Milne 
                                    -------------------------
                                    Name:  John N. Milne 
                                    Title: President 
  
  
                                United Rentals, Inc. 
  
  
                                By: /s/ Bradley S. Jacobs 
                                    -------------------------
                                    Name:  Bradley S. Jacobs 
                                    Title: Chairman and Chief Executive
                                           Officer 
  
  
 Date: May 13, 1999 

  

                             INDEX TO EXHIBITS
  
 EXHIBIT 
 NUMBER                         EXHIBIT 
 --------                       -------
 
 (g)(13)   Motion for Summary Judgment, dated May 11, 1999, filed by
           NationsRent in the Court of Chancery of the State of Delaware.  
  
 (g)(14)   Memorandum of Law in Opposition to the Company's Motion for a
           Preliminary Injunction, dated May 13, 1999, filed by Parent and
           Purchaser in the United States District Court for the District of
           Connecticut. 





             IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

                        IN AND FOR NEW CASTLE COUNTY


UR ACQUISITION CORPORATION, a Delaware         )
corporation, and UNITED RENTALS, INC., a       )
Delaware corporation,                          )
                                               )
                   Plaintiffs,                 )
                                               )
            v.                                 )   Civil Action No. 17090NC
                                               )
MARTIN R. REID, WILLIAM M. BARNUM, JR.,        )
JAMES R. BUCH, DAVID P. LANOHA,                )
CHRISTOPHER A. LAURENCE, ERIC L.               )
MATTSON, BRITTON H. MURDOCH, JOHN M.           )
SULLIVAN, RENTAL SERVICE CORPORATION, a        )
Delaware corporation, and NATIONSRENT, INC., a )
Delaware corporation,                          )
                                               )
                   Defendants.                 )
                                               )
                                               )

                              NOTICE OF MOTION

TO:  David J. Margules, Esquire            Lewis H. Lazarus, Esquire
     Wolf, Block, Schorr & Solis-Cohen LL  Morris, James, Hitchens & Williams
     920 Market Street                     222 Delaware Avenue
     One Rodney Square, 3rd Floor          Wilmington, Delaware 19801
     Wilmington, DE 19801

     Edward P. Welch, Esquire
     Skadden, Arps, Slate, Meagher & Flom
     One Rodney Square, 7th Floor
     Wilmington, DE 19801

      PLEASE TAKE NOTICE that the attached Motion for Summary Judgment will
be presented to the Court at the earliest convenience of Court and counsel.

OF COUNSEL:                              /s/ Daniel A. Dreisbach  
                                         ------------------------------------
                                         Jesse A. Finkelstein
William Snipes                           Daniel A. Dreisbach
Sullivan & Cromwell                      Srinivas M. Raju
125 Broad Street                         Holly June Stiefel
New York, New York  10004                Richards, Layton & Finger
(212) 558-4000                           One Rodney Square
                                         P.O. Box 551
                                         Wilmington, Delaware  19899
                                         (302) 658-6541
                                         Attorneys for Defendant
                                         NationsRent, Inc.

Dated:  May 11, 1999



             IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

                        IN AND FOR NEW CASTLE COUNTY


UR ACQUISITION CORPORATION, a Delaware         )
corporation, and UNITED RENTALS, INC., a       )
Delaware corporation,                          )
                                               )
                   Plaintiffs,                 )
                                               )
            v.                                 )   Civil Action No. 17090NC
                                               )
MARTIN R. REID, WILLIAM M. BARNUM, JR.,        )
JAMES R. BUCH, DAVID P. LANOHA,                )
CHRISTOPHER A. LAURENCE, ERIC L.               )
MATTSON, BRITTON H. MURDOCH, JOHN M.           )
SULLIVAN, RENTAL SERVICE CORPORATION, a        )
Delaware corporation, and NATIONSRENT, INC., a )
Delaware corporation,                          )
                                               )
                   Defendants.                 )
                                               )
                                               )

                        MOTION FOR SUMMARY JUDGMENT

      NationsRent, Inc. ("NationsRent") by its undersigned counsel, hereby
moves pursuant to Court of Chancery rule 56 for summary judgment against
Plaintiffs on the grounds that there is no genuine issue of material fact
and that NationsRent is entitled to judgment as a matter of law. The
grounds for this motion are set forth more fully in NationsRent's brief to
be filed contemporaneously herewith.

OF COUNSEL:                              /s/ Daniel A. Dreisbach  
                                         ------------------------------------
                                         Jesse A. Finkelstein
William Snipes                           Daniel A. Dreisbach
Sullivan & Cromwell                      Srinivas M. Raju
125 Broad Street                         Holly June Stiefel
New York, New York  10004                Richards, Layton & Finger
(212) 558-4000                           One Rodney Square
                                         P.O. Box 551
                                         Wilmington, Delaware  19899
                                         (302) 658-6541
                                         Attorneys for Defendant
                                         NationsRent, Inc.

Dated:  May 11, 1999



             IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

                        IN AND FOR NEW CASTLE COUNTY


UR ACQUISITION CORPORATION, a Delaware         )
corporation, and UNITED RENTALS, INC., a       )
Delaware corporation,                          )
                                               )
                   Plaintiffs,                 )
                                               )
            v.                                 )   Civil Action No. 17090NC
                                               )
MARTIN R. REID, WILLIAM M. BARNUM, JR.,        )
JAMES R. BUCH, DAVID P. LANOHA,                )
CHRISTOPHER A. LAURENCE, ERIC L.               )
MATTSON, BRITTON H. MURDOCH, JOHN M.           )
SULLIVAN, RENTAL SERVICE CORPORATION, a        )
Delaware corporation, and NATIONSRENT, INC., a )
Delaware corporation,                          )
                                               )
                   Defendants.                 )
                                               )
                                               )

                                   ORDER

      Upon the motion by NationsRent, Inc. ("NationRent") for summary
judgment, the Court having considered the motion and arguments of the parties:

      IT IS HEREBY ORDERED this ____ day of _______________, 1999, that
NationsRent's motion for summary judgment is hereby GRANTED.


                                         ___________________________________
                                         Vice Chancellor



                           CERTIFICATE OF SERVICE


            I hereby certify this 11th day of May, 1999, that I caused
copies of the foregoing documents to be served by hand upon the following
counsel:
                   Lewis H. Lazarus, Esquire
                   Morris, James, Hitchens & Williams
                   222 Delaware Avenue
                   Wilmington, DE  19801

                   Edward P. Welch, Esquire
                   Skadden, Arps, Slate, Meagher & Flom LLP
                   One Rodney Square
                   Wilmington, DE  19801

                   David J. Margules, Esquire
                   Wolf, Block, Schorr & Solis-Cohen LLP
                   Suite 300
                   920 King Street
                   Wilmington, DE  19801



                                         /s/ Srinivas Raju    
                                         ----------------------------------
                                         Srinivas Raju





                        UNITED STATES DISTRICT COURT
                          DISTRICT OF CONNECTICUT
  
  
 UR ACQUISITION CORPORATION    : 
 and UNITED RENTALS, INC.,     : 
                               : 
                Plaintiffs,    : 
                               :    CIVIL ACTION NO. 
           -against-           :    399CV00625(DJS) 
                               : 
 JAMES L. KIRK, RENTAL SERVICE : 
 CORPORATION, and NATIONSRENT, : 
 INC.,                         : 
                               : 
                Defendants.    :    May 13, 1999 
  

                      MEMORANDUM OF LAW IN OPPOSITION
                      TO RENTAL SERVICE CORPORATION'S
                    MOTION FOR A PRELIMINARY INJUNCTION

  
           Plaintiffs and Counter Defendants UR Acquisition Corporation and
 United Rentals, Inc. (collectively, "United Rentals") and individual
 Counter Defendants Bradley S. Jacobs, Richard J. Heckmann, Wayland R.
 Hicks, John N. Milne, Michael J. Nolan and Gerald Tsai, Jr. (collectively
 the "Individual Defendants") respectfully submit this memorandum of law in
 opposition to the Motion for a Preliminary Injunction dated April 22, 1999
 by Defendant Rental Service Corporation ("Rental Service"). 

           Defendant and Counter Plaintiff Rental Service seeks a
 preliminarily injunction barring United Rentals from electing the
 Individual Defendants to the Board of Directors of Rental Service on the
 ground that they would create an officer or director interlock allegedly in
 violation of Section 8 of the Clayton Act, 15 U.S.C. section 19.  However,
 as discussed below, the Individual Defendants are former nominees; they
 have been replaced by six independent nominees who are neither officers nor
 directors of United Rentals.  Therefore, Rental Service's Motion for a
 Preliminary Injunction must be denied because, without an interlock, Rental
 Service cannot demonstrate irreparable harm, or a likelihood of success on
 the merits of its claims, or sufficiently serious questions going to the
 merits to make such claims a fair ground for litigation, or that the
 balance of hardships tips decidedly in its favor.(1)


                             STATEMENT OF FACTS

           United Rentals is a Delaware corporation with its principal
 executive offices in Greenwich, Connecticut.  Declaration of Robin L. Smith
 ("Smith Decl.") paragraph 3.  Rental Service is a Delaware Corporation with
 its principal executive offices in Scottsdale, Arizona.  Rental Service
 Memorandum of Points and Authorities at 2. 

           On April 5, 1999, United Rentals commenced a non-discriminatory,
 non-coercive, all cash offer to purchase all outstanding shares of Rental
 Service common stock at a price of $22.75 per share, representing a 32%
 premium over the closing price of such shares on the last trading day prior
 to the offer ("Tender Offer").  On that day, United Rentals filed with the
 SEC the following documents and information required to be disclosed by
 Section 14(d) of the Securities Exchange Act of 1934 and the rules and
 regulations promulgated thereunder:  a Schedule 14D-1, together with
 exhibits thereto, including an Offer to Purchase dated April 5, 1999,
 Summary Advertisement dated April 5, 1999, Press Release dated April 5,
 1999, and Commitment Letter from Goldman Sachs Credit Partners L.P. dated
 April 4, 1999. 

           United Rentals also took steps to exercise its rights to solicit
 other Rental Service shareholders to act by written consent to replace the
 Rental Service Board of Directors.  On April 13, 1999, United Rentals filed
 a preliminary Schedule 14A Consent Solicitation Statement with the
 Securities and Exchange Commission ("SEC") (attached as Exhibit A to Smith
 Decl.), which included nine proposed nominees to the Rental Service Board
 of Directors, six of whom were the Individual Defendants.  In an April 19,
 1999 letter to Rental Service (received by Rental Service prior to the time
 Rental Service filed its amended counterclaims and motion for a preliminary
 injunction), United Rentals identified six alternate nominees for election

 --------------------

 (1)      On April 29, 1999, United Rentals moved to dismiss Rental
          Service's Amended Counterclaims pursuant to Federal Rule of
          Civil Procedure 12(b)(6).  That motion is pending before
          this Court.


 to the Rental Service Board of Directors who would serve if its nominees,
 including the Individual Defendants, were "unable or unwilling to serve, or
 [were] otherwise disqualified from serving, as directors of Rental
 Service."  Exhibit B to Smith Decl.(2)  On April 27, 1999, United Rentals
 replaced the Individual Defendants with the six alternates and filed a
 revised Schedule 14A Consent Solicitation Statement with the SEC (attached
 as Exhibit D to Smith Decl.) disclosing this information.  On May 13, 1999,
 United Rentals filed a definitive Schedule 14A Consent Solicitation
 Statement (attached as Exhibit E to Smith Decl.), which states that United
 Rentals' "primary purpose in seeking to elect the Nominees to the Rental
 Service Board is to . . . facilitate the consummation of the [Tender] Offer
 and the Proposed United Rentals Merger."  Exhibit E to Smith Decl. at 3.(3)
 As this public filing makes absolutely clear, all of the United Rentals
 nominees now are individuals who are not United Rentals officers or
 directors.  Specifically, the six independent nominees who replaced the
 Individual Defendants are:  William E. Aaron, President of Executive
 Monetary Management, Inc.; David A. Bronner, Esq., partner in Katten,
 Muchin and Zavis; Peter Gold, certified public accountant at Peter Gold
 CPA; David C. Katz,  business consultant; Elliot H. Levine, certified
 public accountant at Levine & Seltzer LLP; and Jeffrey M. Parker, President
 of Financial Advisory Services of Genesis Capital, Inc.  Exhibit E to Smith
 Decl. at 4-5.

 -------------------

 (2)    United Rentals also identified the six alternate nominees in an
        April 21, 1999 filing with the SEC (also prior to the filing of
        Rental Service's amended counterclaims and motion for preliminary
        injunction). United Rentals' Sixth Amend- ment to Schedule 14D-1
        (attached as Exhibit C to Smith Decl.).

 (3)    The record date for the consent solicitation is May 13, 1999.
        Exhibit E to Smith Decl. at iii.


                                 ARGUMENT

 A.   THE STANDARD FOR THE ISSUANCE  
      OF A PRELIMINARY INJUNCTION       
  
           The standard for the issuance of a preliminary injunction is well
 established in the Second Circuit:  "The party seeking the injunction must
 demonstrate (1) irreparable harm should the injunction not be granted, and
 (2) either (a) a likelihood of success on the merits, or (b) sufficiently
 serious questions going to the merits and a balance of hardships tipping
 decidedly toward the party seeking the injunction."  Able v. United States,
 44 F.3d 128, 130 (2d Cir. 1995) (citing Resolution Trust Corp. v. Elman,
 949 F.2d 624, 626 (2d Cir. 1991)).  Because Rental Service cannot satisfy
 any of the above requirements, its motion for a preliminary injunction must
 be denied.(4)


 B.   SINCE THERE IS NO PENDING OR THREATENED 
      OFFICER OR DIRECTOR INTERLOCK, RENTAL 
      SERVICE'S MOTION FOR A PRELIMINARY INJUNCTION 
      MUST BE DENIED ON THE MERITS 

           Section 8 of the Clayton Act prohibits any person from serving
 simultaneously as a director or officer of any two competing corporations
 if elimination of competition between them would constitute a violation of
 U.S. antitrust laws.  15 U.S.C. section 19(a)(1); see BankAmerica Corp. v.
 United States, 462 U.S. 122, 124-28 (1983) (reviewing the history of
 Section 8); see also White v. Central Vt. Pub. Serv. Corp., 958 F. Supp.
 174, 176-78 (D. Vt. 1996) (construing 1990 amendments to Section 8);
 Protectoseal Co. v. Barancik, 1994-1 Trade Cas. (CCH) paragraph 70,494
 (N.D. Ill. 1993) (same), aff'd, 23 F.3d 1184 (7th Cir. 1994).(5)

 ------------------
 
 (4)    Notably, nowhere in its Memorandum of Points and Authorities does
        Rental Service address the balance of hardships.

 (5)    Section 8 contains certain de minimis exceptions which, given that
        there are no interlocks, need not be addressed.


           Even assuming that Rental Service and United Rentals are
 competitors and do not fall within any of the de minimis exceptions to
 Section 8, the Individual Defendants are no longer nominees, and the actual
 nominees do not present a pending or threatened violation of Section 8. 
 Simply put, there is no interlock since no nominee is an officer or
 director of United Rentals or, for that matter, any firm in the same
 business as Rental Service.  Without such an interlock, Rental Service
 cannot demonstrate a likelihood of success on the merits of its claims or
 sufficiently serious questions going to the merits to make such claims a
 fair ground for litigation.  See In re Penn Central Securities Litigation,
 367 F. Supp. 1158, 1168 (E.D. Pa. 1973) (Section 8 claims are moot where no
 interlock exists); see also Fallis v. Ambach, 710 F.2d 49, 54 (2d Cir.
 1983) (appellants could not demonstrate a likelihood of success on the
 merits or sufficiently serious questions going to the merits of their claim
 because they failed to state a claim upon which relief can be granted). 


 C.   RENTAL SERVICE CANNOT DEMONSTRATE THAT 
      IT WILL BE IRREPARABLY HARMED UNDER THE 
      ANTITRUST LAWS BY THE NOMINATION OF NINE 
      INDEPENDENT DIRECTORS                                             
  
           In the Second Circuit, irreparable harm is the "single most
 important prerequisite for the issuance of a preliminary injunction." 
 Rodriguez v. DeBuono, Nos. 97-9152(L) et al., __ F.3d __, 1999 WL 247113,
 at *4 (2d Cir. Mar. 23, 1999) (per curiam).  "The movant must demonstrate
 an injury that is neither remote nor speculative, but actual and imminent
 . . . ."  Id.  "In the absence of a showing of irreparable harm, a motion
 for a preliminary injunction should be denied."  Id. 

           United Rentals has disclosed that its "primary purpose in seeking
 to elect the Nominees to the Rental Service Board is to . . . facilitate
 the consummation of the [Tender] Offer and the Proposed United Rentals
 Merger."  Exhibit E to Smith Decl. at 3.  The nomination by United Rentals
 of independent directors who have no interlocks, to achieve this legitimate
 business purpose, cannot form the basis of "actual and imminent" injury
 under the antitrust laws. 

           Rental Service argues that it will suffer irreparable harm
 because the allegedly interlocking directors will "have the effect of
 lessening competition" between United Rentals and Rental Service.  Rental
 Service Memorandum of Points and Authorities at 9.  However, since there
 are no interlocking directors and therefore no pending or threatened
 violation of Section 8, Rental Service cannot show any injury, let alone
 meet the high "actual and imminent" injury standard required for injunctive
 relief.  See United States v. W.T. Grant Co., 345 U.S. 629, 633 (1953)
 (affirming trial court's refusal to grant injunctive relief where there was
 no threat of a violation). 

           Finally, United Rentals' nomination of independent directors is
 part of the public record, and its nominees could not be replaced without
 having a serious negative impact on the timing and success of its consent
 solicitation, and ultimately the Tender Offer.(6)  As disclosed in the
 definitive Consent Solicitation Statement dated May 13, 1999: 

      United Rentals believes the Amended Counterclaim and motion for
      preliminary injunction are without merit and intends to
      vigorously defend against such motion.  However, United Rentals
      believes that it is in the best interests of Rental Service
      stockholders that United Rentals be able to move forward
      expeditiously with its solicitation of consents and afford Rental
      Service stockholders the opportunity to act on the Proposals. 
      Accordingly, in order to avoid delay in the consent solicitation,
      each nominee originally designated by United Rentals who is an
      officer and/or director of United Rentals has withdrawn as a
      nominee, and a total of nine persons who are not directors or
      officers of United Rentals or its affiliates have been designated
      by United Rentals as Nominees. 
  
 Exhibit E to Smith Decl. at 4.  Obviously, there is no "cognizable danger"
 that an interlock will occur in the future.  See W.T. Grant Co., 345 U.S.
 at 633.  Accordingly, since Rental Service cannot show that "relief is
 needed," SEC v. Keller Indus., Inc., 342 F. Supp. 654, 660 (S.D.N.Y. 1972),
 it has failed to satisfy its burden and its motion for injunctive relief
 must be denied. 


- ---------------

(6)     The record date for the consent solicitation is May 13, 1999. In
        order to replace any of its proposed nominees, which United Rentals
        has no intention of doing, United Rentals would be required, among
        other things, to request a new record date and modify its consent
        solicitation statement.


 D.   THE BALANCE OF HARDSHIPS TIPS 
      DECIDEDLY IN FAVOR OF UNITED RENTALS 
  
           As demonstrated above, Rental Service has completely failed to
 demonstrate that it will suffer any injury, let alone irreparable injury,
 if its motion for injunctive relief is denied.  In contrast, United Rentals
 would suffer severe harm from the entry of an injunction: 

           The risk of an erroneous issuance of an injunction under
      such circumstances must be weighed against the harm, itself
      perhaps irreparable, the injunction may cause the parties
      enjoined.  There exists the danger that shareholders may view an
      injunction inaccurately as a final determination of wrongdoing on
      the part of First Union and influence the election in this way. 
      The equities do not warrant undertaking such a risk here. 
  
 Unicorp Financial Corp. v. First Union Real Estate Equity & Mortgage
 Investments, 515 F. Supp. 249, 263 (S.D. Ohio 1981); accord Kennecott
 Copper Corp. v. Curtiss-Wright Corp., 584 F.2d 1195, 1200 (2d Cir. 1978)
 ("There is a very strong likelihood, however, that the election results
 were influenced by the criticism of Curtiss-Wright contained in the
 district court's election-eve decision."); Pantry Pride, Inc. v. Rooney,
 598 F. Supp. 891, 902 (S.D.N.Y. 1984) (drastic relief requested by
 plaintiff would send wrong message to Pantry Pride stockholders).  Since
 the balance of hardships tips decidedly in favor of United Rentals and
 Rental Service cannot demonstrate irreparable harm, or a likelihood of
 success on the merits, or sufficiently serious questions going to the
 merits to make such claims a fair ground for litigation, Rental Service's
 motion for injunctive relief must be denied. 


                                 CONCLUSION

           For the foregoing reasons, this Court must deny Rental Service's
 motion for a preliminary injunction. 

                          PLAINTIFFS-COUNTER DEFENDANTS UR ACQUISITION
                          CORPORATION and UNITED RENTALS, INC. and COUNTER-
                          DEFENDANTS BRADLEY S. JACOBS, RICHARD J. HECKMANN,
                          WAYLAND R. HICKS, JOHN N. MILNE, MICHAEL J. NOLAN
                          AND GERALD TSAI, JR. 
  
  
                          By:  /s/  Robin L. Smith 
                               ---------------------------------
                               Thomas J. Groark, Jr. (ct04245) 
                               Richard M. Reynolds (ct06124) 
                               Philip S. Wellman (ct09636) 
                               Robin L. Smith (ct13345) 
                               DAY, BERRY & HOWARD LLP 
                               CityPlace I 
                               Hartford, Connecticut  06103 
                               (860) 275-0100 
  
 OF COUNSEL: 
  
 Jay B. Kasner 
 Clifford H. Aronson 
 Steven J. Kolleeny 
 SKADDEN, ARPS, SLATE, 
    MEAGHER & FLOM LLP 
 919 Third Avenue 
 New York, New York  10022 
 (212) 735-3000 


                           CERTIFICATE OF SERVICE
  
           I hereby certify that a copy of the foregoing has been served on
 the following counsel and parties this date, via overnight courier: 
  
 Marc W. Rappel, Esquire 
 LATHAM & WATKINS 
 633 West Fifth Street 
 Suite 4000 
 Los Angeles, CA  90071 
  
 Joseph B. Frumkin, Esquire 
 SULLIVAN & CROMWELL 
 125 Broad Street 
 New York, NY  10004 
  
 and via hand delivery to: 
  
 William H. Champlin III, Esquire 
 Mark V. Connolly, Esquire 
 TYLER, COOPER & ALCORN, LLP 
 CityPlace I   35th Floor 
 Hartford, CT  06103-3488 
  
 Robert A. Izard, Esquire 
 Bradford S. Babbitt, Esquire 
 ROBINSON & COLE LLP 
 280 Trumbull Street 
 Hartford, CT  06103-3597 
  
  
                                         /s/  Robin L. Smith 
                                    ------------------------------------
                                    Robin L. Smith






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