Dollar Thrifty Automotive Group Inc. is cooperating with Hertz Global Holdings Inc.’s efforts to acquire regulatory approval for its $2.08 billion purchase offer.
Dollar Thrifty, which is the fourth-largest U.S. car-rental company, said that there’s no assurance that it will get the approval for a deal with Hertz or Avis Budget Group Inc. On May 9, Hertz, the largest publicly traded rental-car company, offered to purchase Dollar Thrifty for cash and stock as part of efforts to beat Avis’s bid.
The day after the bid was made, Hertz’s offer was valued at $72 a share -- about 24% higher than Avis’s proposal in September. Last September, Dollar Thrifty shareholders had rejected a $1.44 billion offer from Hertz.
Since then, Avis and Dollar Thrifty have been eagerly awaiting the approval from the U.S. Federal Trade Commission. The winning bidder – whether Hertz or Avis – will acquire a company that’s more profitable than any of them.
This also means that either one will be the second- largest U.S. car-rental company behind No. 1 Enterprise Rent-A-Car Co. Hertz’s offer, which doesn’t depend on financing conditions, consists of $57.60 in cash and 0.8546 Hertz shares, or about $71.93 a share if it’s based on the closing prices last Thursday.
Hertz said that discussions have been ongoing with the FTC. It also divulged that to boost its chances of approval, it has started to sell its Advantage brand.