Dollar Thrifty cooperating with Hertz to get regulatory approval

Article by Christian A., on May 14, 2011

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.

Topics: hertz

If you liked the article, share on:

Comments

Recommended

The Nurburgring is the one track that many automakers want to hold a record of, because only the best of the best do. This time, a group of extraordinary passionate...
by - July 25, 2017
Would you like your convertible to be inspired by a yacht? Well, you do not have to imagine it anymore - thanks to the Bentley Continental GT Convertible and Mulliner...
by - July 25, 2017
The 2018 Jaguar E-Pace is the leaping cat’s first venture into the compact SUV segment, and sure enough, it didn’t take long before an artist rendered a wilder version of...
by - July 25, 2017
Good news for Audi EU5 and EU6 diesel car owners in Europe. They can now update their cars to fit six-cylinder or eight-cylinder TDI engines through a retrofit program, and...
by - July 25, 2017
Recently, Autocar revealed that a Ferrari SUV is on the way, after the company continuously denied that they will not build one. And unlike the usual crossover styling, Ferrari will...
by - July 25, 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