Hertz finalizing a deal to acquire Dollar Thrifty

Article by Christian A., on August 27, 2012

Hertz Global Holdings Inc. is finalizing a deal to acquire Dollar Thrifty Automotive Group Inc. Insiders said that an agreement may be presented early next week. A source said that the all-cash offer is for $87.50 a share. This new offer has a value of around $2.56 billion, based on the 29.24 million shares that include options and compensation-related stock listed in its quarterly regulatory filing.

Another source said that both boards will see the proposal this weekend. There’s still no guarantee that this deal will be completed. It offers an 8% premium over Dollar Thrifty's closing price Friday of $81. For over two years, Hertz has sought to acquire Dollar Thrifty, the last available publicly held rental-car company.

Dollar Thrifty shareholders turned down the bid that Hertz made in 2010 of about $1.2 billion. Last year, it made another offer but it was later withdrawn due to market conditions. A source said that several of these figures might not be the same anymore since the regulatory filling on August 2 that may have an impact on Hertz's exact cost of the acquisition.

So far, Dollar Thrifty and Hertz haven’t responded to these reports. In the past few weeks, Hertz started to contact some Dollar Thrifty investors to determine at what price they would sell. It was also reported that Hertz asked investors if it should pursue a hostile bid.

Topics: hertz

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