HERTZ Global Holdings is back in the market for smaller car rental firm Dollar Thrifty, offering close to $2.1bn (£1.3bn) as it looks to bump a rival bid from Avis Budget that has struggled to win regulatory clearance.
Hertz’s latest bid for Dollar Thrifty – a $1.2bn offer in April, 2010 was rejected by Dollar Thrifty shareholders last September – comes as the car rental industry is enjoying improved demand in a rebounding travel and tourism business.
Dollar Thrifty last week reported market-beating quarterly results and raised its profit outlook.
Avis yesterday also posted a quarterly profit on a resurgent travel industry in the US and overseas.
Hertz said it will go direct to Dollar Thrifty shareholders offering $72 a share – a three per cent premium to Dollar Thrifty’s Friday close – comprising $57.60 in cash and 0.8546 Hertz shares.
Dollar Thrifty and Avis have been pursuing antitrust clearance since October, when Avis came in with a cash-and-stock offer for Dollar Thrifty that is currently worth $1.67bn based on Avis’ Friday close.
City A.M. Reporter