Industry Mergers and Acquisitions Shape the Landscape of Rentals and Technology

Strategic Insights -

United Rentals Inc., the largest equipment rental company in North America, is making an unsolicited bid for rival Rental Service Corp. This move would merge two major players in the industry, creating a behemoth with annual revenues of approximately $3 billion and a rental fleet of over 400,000 pieces of equipment. Meanwhile, Intel is poised to cut prices on its Celeron, Pentium II, and Pentium III products by up to 25% to stimulate demand, while the US economy continues to show signs of strength, with non-manufacturing business expanding for the third consecutive month. Additionally, workers at the Virginia shipyard have gone on strike, and America Online has acquired When Inc., a provider of Internet calendar and event services. J.C. Penney is also planning to launch a new magazine for teenagers, targeting a circulation of 3.5 million.

Key Takeaways:

  • United Rentals Inc. is making an unsolicited bid for rival Rental Service Corp., which would create a combined company with annual revenues of approximately $3 billion and a rental fleet of over 400,000 pieces of equipment.
  • Intel is expected to cut prices on its Celeron, Pentium II, and Pentium III products by up to 25% to stimulate demand, particularly for its top-of-the-line Pentium III chip family.
  • The US economy is showing signs of strength, with non-manufacturing business expanding for the third consecutive month, as indicated by the National Association of Purchasing Management's index of non-manufacturing business, which rose to 62.5 in March.
  • Workers at the Virginia shipyard have gone on strike in a dispute over wages and benefits.
  • America Online has acquired When Inc., a provider of Internet calendar and event services, for an undisclosed amount of stock.
  • J.C. Penney plans to publish a new magazine for teenagers, titled "Noise", with a circulation target of 3.5 million.

Statistics:

  • United Rentals' proposed acquisition of Rental Service Corp. would create a combined company with annual revenues of approximately $3 billion.
  • Intel plans to cut prices on its Celeron, Pentium II, and Pentium III products by up to 25%.
  • The National Association of Purchasing Management's index of non-manufacturing business rose to 62.5 in March, from 57 in February.
  • The Workers strike at the Virginia shipyard has been on for over a week, with approximately 20,000 workers involved.
  • America Online acquired When Inc. for an undisclosed amount of stock.
  • J.C. Penney plans to distribute 3.5 million copies of its new magazine, "Noise", in its stores.

Sources:

  • United Rentals Inc. press release
  • Intel Corp. analyst comments
  • National Association of Purchasing Management's index of non-manufacturing business
  • Newport News Shipbuilding strike report
  • America Online Inc. press release
  • J.C. Penney Company Inc. press release