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Dollar Thrifty calls for end to merger dance

Dollar Thrifty calls for end to merger dance

Dollar Thrifty has issued a call to potential merger partners to cement offers for the firm as it releases its latest financial results.

The car rental giant made $49.4 million in net profit in the second quarter, up 16.2 per cent year-on-year.

However, the company noted neither Hertz nor any other company has put forward an offer during 2012 to purchase the company.

This is despite persistent press reports about commitments Hertz has made to the Federal Trade Commission to divest of certain Dollar Thrifty assets in the context of a hypothetical transaction.

Dollar Thrifty added: “The company noted, after three years of merger-related activity and speculation, it believes it is time for a compelling offer to be made or for this process to come to a close so that the company can move forward under its standalone plan without the constant distraction of merger speculation.”

Revenues in the three months ended June 30th remained near flat at $395.4 million, while costs were cut by 2.4 per cent to $317 million.

Scott Thompson, chairman, president and chief executive, said: “We are pleased to report record second quarter results, particularly in light of the disappointing current economic environment.

“Rental day growth, improved vehicle utilisation, a strong used vehicle market and continued focus on cost control all contributed to the year-over-year improvement and mitigated the softness in pricing.”