Dollar Thrifty Sets Deadline For Purchase Offers

Hi all,

Following on from Scott Thompson’s letter to Budget and Thrifty sent late August, Dollar Thrifty this week sent out letters detailing the deadline they expect all formal offers to be submitted by.

The letter states

Final offers for Dollar Thrifty are due no later than 5 p.m. EST Oct. 10
Mark Pinsky, Dollar Thrifty consultant goes on to state
The board of directors of the company will meet to review your offer, Based upon your offer, the board will decide whether to have further discussions between you and the company regarding a potential transaction.
“The company reserves the right in its sole discretion to evaluate the terms and conditions of your offer, to enter into or terminate any negotiations or agreements with any potential purchaser or purchasers at any time and to reject any or all offers from potential purchasers for any reason whatsoever.”
An interesting part of the letter asks potential buyers to list the following within their proposal
  • Purchase Price
  • Mix between cash and shares.
  • How they plan to finance the deal.
  • Regulator terms that would be required to complete the deal.
  • How Dollar Thrifty will be merged in to the suitors company.
  • The composition of the combined company’s board of directors post-transaction.
  • How they will maintain a presence in Tulsa.
  • How they will retain Dollar staff.

Retention of staff clearly favours Budget Rent A Car who already have a large presence in Tulsa however the regulator terms possibly suit Hertz who have already stated they would look to sell Advantage Rent A Car to complete the deal.

Hopefully all looks positive that we will finally get some closure this year.

Kind regards,

James

 Florida car hire

Could Dollar Rent A Car Be Losing Its Patience?

Hi all,

As regular readers will know, we’ve been following the developments of the Dollar Rent A Car potential buy out since the beginning.

Both Hertz and Avis/Budget have been seeking separate FTC approval on a deal for what seems like a life time! Actually Dollar have been working on unsolicited merger issues since 2008!

And it appears Dollar Rent a Car  may well be running out of patience. Scott Thompson, President and Chief Executive Officer for Dollar Thrifty stated in a preprepared statement.

The company is cash rich and underleveraged and needs to move forward in a way that enhances shareholder value. We have been working on unsolicited merger issues since 2008, and they are expensive and distracting.

On further questioning, Thompson reiterated the frustration level, though he said the company has not drawn

“a line in the sand”

with regards to a deal and continues to be

“open to alternatives.”

Personally I’d love to see an actively aggressive Dollar Rent A Car, for me the merger talk has inadvertently caused Dollar Thrifty to tread water and not sure how much longer they can continue to leave the deals hanging for.

What do you think?

regards,

James,

 car hire USA


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