MIAMI - A bid to buy out Neff Corp. led by CEO Kevin Fitzgerald and minority owner GE Capital was still in the works at press time. Neff maintained its silence on the deal and shareholder lawsuits filed in response to the proposal, which seeks to take the company private at $9 a share.
A special committee established by Neff to review the bid was working with both parties to complete the transaction, according to SEC documents filed April 21. The proposal is contingent upon certain conditions, including the receipt of necessary financing and the approval of the boards of directors of Neff and GE.
Speculation also surfaced in April that Neff was in talks with another potential buyer, a major heavy-equipment manufacturer. Officials from Volvo Construction Equipment Group visited Neff's Miami headquarters, according to sources, though some observers questioned the likelihood that the heavy-equipment manufacturer and troubled rental company could find a beneficial match.
Meanwhile, Neff and members of its board of directors are defendants in at least six lawsuits filed by shareholders, according to SEC documents. The plaintiffs in the suits, filed in the Delaware Court of Chancery, allege that Neff and board members acted improperly in responding to the buyout bid led by Fitzgerald. The plaintiffs seek, among other things, injunctive relief and damages.
Neff, No. 7 on the new RER 100, has not returned phone inquiries from RER.
