Dollar Thrifty Chief Executive Urges No Action on Hertz; Says $72 Too Low

Discussion in 'Other Car Rental Programs' started by sobore, Jun 7, 2011.  |  Print Topic

  1. sobore
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    sobore Gold Member

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    Dollar Thrifty Automotive Group Inc. (DTG), the rental-car chain being sought by two larger competitors, recommends investors not tender shares to Hertz Global Holdings Inc. (HTZ) because the $72-a-share bid undervalues the company.
    “Hertz’s current offer does not represent a fair split of the economic value created by the combination of Dollar Thrifty Automotive Group and another large rental-car operation,” Chief Executive Officer Scott Thompson said in an e-mailed statement. “Our significant operating cash flow, cash-rich balance sheet, proven brands, combined with our synergistic and scarcity value is clearly more than $72 a share.”
    Hertz and Avis Budget Group Inc. (CAR), the two largest publicly traded rental-car chains, have been bidding for Tulsa, Oklahoma- based Dollar Thrifty, the third biggest, since April 2010. Avis and Dollar Thrifty have been seeking U.S. Federal Trade Commission approval for a merger since October, after shareholders rejected an offer from Hertz. The agency is also reviewing Hertz’s most recent bid.

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