Dollar Thrifty race opens up

Dollar Thrifty race opens up

Hertz Global Holdings has re-emerged as a suitor in the race to acquire Dollar Thrifty Automotive Group (DTAG) as a potential deal with Avis rumbles on.

New Jersey-based Hertz outlined an offer of $72 a share for DTAG earlier, comprising $57.60 in cash and 0.8546 shares of Hertz.

Dollar Thrifty Automotive Group has so far refused to comment on the latest developments.

However, it is believed the board of directors will now consider the offer.

“Dollar Thrifty’s board of directors will review and consider Hertz’s offer and related statements in accordance with its fiduciary duties to shareholders, and will have no further comment on this matter at this time,” read a statement from the organisation.

Hertz’s proposal comes as Avis looks to close the deal for DTAG.

In its first-quarter earnings report released last week, Avis said: “The company continues to pursue the acquisition of Dollar Thrifty Automotive Group, the fourth-largest car rental company in the United States.

“Avis Budget Group and Dollar Thrifty have been working together to obtain antitrust clearance for the proposed acquisition.”

Avis has been working with American federal regulators to overcome potential anti-trust objections to the deal.

DTAG has also recently reiterated its support for the deal.

Last week a statement explained: “As previously reported, the company submitted its certification of substantial compliance with the Federal Trade Commission’s second request in late February.

“The company is currently continuing to cooperate with Avis Budget with respect to FTC issues.

“The company and Avis Budget currently have no agreement, written or verbal, regarding merger terms, including price.”

Hertz Premium

A few shorts weeks ago the Avis-Dollar Thrifty deal appeared in the bag.

However, Hertz contends its offer represents a 26-per cent premium over the DTAG 90-day share price.

“The Hertz proposal offers immediate and superior value as well as deal certainty to Dollar Thrifty shareholders. Moreover, it is a firm offer in contrast to the entirely hypothetical Avis Budget transaction,” Hertz officials noted.