Hertz agrees to sell more locations to get Dollar Thrifty deal OK'd

Discussion in 'Hertz | #1 Awards/#1 Club' started by sobore, Nov 13, 2012.  |  Print Topic

  1. sobore
    Original Member

    sobore Gold Member

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    http://www.tulsaworld.com/business/article.aspx?subjectid=54&articleid=20121113_54_E1_HertzG577906

    Hertz Global Holdings Inc. has agreed to shed more airport locations, which may lead the Federal Trade Commission to allow the $2.3 billion acquisition of Dollar Thrifty Automotive Group Inc. to go forward, two people familiar with the negotiations said.

    The FTC indicated it's willing to approve the transaction on the condition that Hertz sell at least a dozen extra airport counters in order to make sure the deal doesn't limit competition in the rental-car market, Bloomberg News reported. Its sources asked not to be identified because the negotiations aren't public.

    The acquisition had met resistance at the FTC over the market share the combined company would command at airports, people familiar with the matter have said. Hertz, with 8,750 outlets worldwide, has more than 3,900 U.S. locations, while Tulsa-based Dollar Thrifty has about 280 corporate-owned outlets in the U.S. and Canada.

    "It kind of feels like its heading to a conclusion," Chris Agnew, a Stamford, Conn.-based analyst at MKM Partners LLC, said in an interview with Bloomberg.
    "I had fairly high confidence that there might be the perception that going from four companies to three is bad, but this industry is competitive location by location, so this still will be a competitive business."

    Read More: http://www.tulsaworld.com/business/article.aspx?subjectid=54&articleid=20121113_54_E1_HertzG577906
     
    Fyaric and uggboy like this.
  2. pyndasky

    pyndasky Silver Member

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    I'm more concerned about the near total elimination of an affordable market tier. Thrifty and Dollar are typically priced far below the bigger competitors. Hopefully, Hertz won't restructure the rate tables of Dollar/Thrifty....
     
  3. Fyaric

    Fyaric Silver Member

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    On the east coast I've hardly seen thrifty/dollar cheaper!
    As well on the west coast advantage has sometimes been the cheapest!.......
     
  4. SC Flier
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    SC Flier Gold Member

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    http://www.tulsaworld.com/site/printerfriendlystory.aspx?articleid=20121119_298_0_HertzG397502

    Hertz Global Holdings Inc. has completed its $2.3 billion $87.50-per-share acquisition of Tulsa’s Dollar Thrifty Automotive Group Inc., executives of the Park Ridge, N.J., rental car company said Monday.

    Although there was over-the-counter trading of a couple hundred Dollar Thrifty shares on Monday, the New York Stock Exchange suspended trading of the shares just before noon EST, Hertz executives said.

    By late Friday, Hertz said it had purchased 27,956,234 shares of Dollar Thrifty, representing about 99.6 percent of the total outstanding shares, company executives said.

    “The (acquisition) transaction is closed,” said Hertz spokesman Richard Broome. “(Dollar Thrifty) is a wholly owned subsidiary of Hertz.”
     

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