After Hertz Global Holdings Inc. withdrew its $1.44 billion bid to acquire Dollar Thrifty Automotive Group Inc. as shareholders rejected the deal, there is now no obstacle for Avis Budget Group Inc.'s $1.53 billion takeover offer.
At a special meeting in Chicago last Thursday, Dollar Thrifty investors holding about 13.8 million shares voted against the Hertz bid while those in favor only accounted for about 11.8 million shares.
In a statement, Hertz CEO Mark Frissora said that the company would end all activities linked to the Dollar Thrifty takeover and will now focus on the expansion of its Advantage brand and US off-airport business.
With Hertz's departure, the path is cleared for Avis, which had recently raised its offer with a $20 million breakup fee. Dollar Thrifty had been asking to include this fee in the event that the proposal doesn't receive regulatory approval.
The board of Dollar Thrifty had pointed to the lack of such a fee in refusing the offer. In a statement, Dollar Thrifty CEO Scott Thompson said that the company respects the shareholders’ vote and that it remains to be “confident in [its] ability to continue to deliver outstanding value for them.”
Thompson added that the company will assess all of its options to maximize value for Dollar Thrifty shareholders. Thompson had not mentioned Avis in his statement. Recently, Avis said that within 10 days, it will initiate an exchange offer for Dollar Thrifty on its most recent terms. [via autonews - sub. required]