Hertz offered to buy Dollar Thrifty for $2.24 billion in cash and stock

Article by Christian Andrei, on May 7, 2011

To counter a bid by rival Avis Budget Group Inc., Hertz Global Holdings Inc. made an offer to buy Dollar Thrifty Automotive Group Inc. for $2.24 billion in cash and stock.

Hertz, the largest publicly traded rental-car company, offered $72 a share, which is 24% higher than what Avis offered. Hertz, whose offer was rejected previously, wants to prevent the merging of Avis and Dollar Thrifty (the third- and fourth-largest U.S. rental car companies).

Avis and Dollar Thrifty have been asking the U.S. Federal Trade Commission to approve this deal. Fred Lowrance, an analyst with Avondale Partners LLC in Nashville, Tenn., believes that the bidding process will not end here and expects Avis to act soon.

Hertz's offer, which isn’t dependent on financing conditions, consists of $57.60 in cash and 0.8546 Hertz shares. Hertz said that this includes options and equity awards. Dollar Thrifty has 31.2 million shares outstanding, putting the value of the offer at $2.24 billion.

Hertz said that the rental-car company, which has started the process of selling its Advantage brand to facilitate FTC approval, has begun talks with the regulator.

In the statement, Hertz CEO Mark Frissora said that it has made a “superior bid," which he refers to as an 18% premium to the 60-day average share price. He said that the company is hoping to reach a “consensual business combination” with Dollar Thrifty and is working on an “accelerated timetable."

Topics: hertz

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Retired Formula 1 driver Jenson Button has just received his brand new McLaren MSO 675LT Spider. This was confirmed after McLaren Beverly Hills posted a picture on its official Instagram...
by - January 24, 2017
Ford and Toyota have come together in the hopes of standardizing their vehicles’ smartphone integration system. The open-source platform is said to compete with Google Android Auto and Apple CarPlay...
by - January 24, 2017
The race to autonomous driving has been dictated by the need to make the road safer and reduce the incidents of vehicle crashes. Several major carmakers in the world have...
by - January 24, 2017
The Shooting Brake is probably the least rendered body shape in the automotive world. But it’s also the most sought after design among car nuts for its unique, old-fashioned charm....
by - January 23, 2017
Perhaps to make the upcoming Valentine’s day more special, Tinder dating app and Ford UK have cooked up a special blind date for all the single blokes and chicks in...
by - January 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries