The Dollar Rent A Car Buyout And 2012

Hi all,

The Dollar Rent A Car perceived buyout dominated this blog last year, offering up 14 individual posts, time lining perfectly the swings and roundabouts of trying to sell the 4th largest car hire USA supplier.

Dollar Thrifty Timeline 

30/07/10 – Avis Budget Enter Bidding For Dollar Thrifty Car Hire

05/08/10 – Dollar Thrifty Politely Decline Avis Budget Offer

03/09/10 - Budget Car Hire Increase Dollar Car Rental Bid

30/09/10 – Avis Budget’s Response To Hertz’s Comments Over Dollar Thrifty

21/01/11 – Dollar And Avis/Budget Provide Joint Statement Regarding Takeover

22/02/11 – Avis Budget Seeks Dollar Thrifty Clarity

10/05/11 – Hertz Make New Bid For Dollar Thrifty

29/07/11 – My Take On The Dollar Thrifty Buy Out

12/08/11 – Could Dollar Rent A Car Be Losing Patience?

30/08/11 – Letter From Dollar Thrifty To Hertz And Avis Budget

08/09/11 – Dollar Thrifty Set Deadline For Purchase Offers

14/09/11 – Avis Budget Withdraw Bid For Dollar Thrifty Group

06/10/11 – What’s The Hold Up With The Dollar Thrifty Deal?

28/10/11 – Hertz Pull Out Of Dollar Bid

 

What’s next?

Now first off, I have no insider knowledge. Anything written here is purely guess work and to be honest it might not even be intelligent guess work but here we go…

I believe in the first quarter it will be announced that Hertz have found a buyer for their low cost brand Advantage Rent A Car, I think the buyer will either be Fox Rent A Car or Sixt Rent A Car.

The reasons I believe it will be one of these two are as follows; Fox Rent A Car fresh of their victory in this year JD Power awards have been looking to expand quickly and have recently opened their first Florida location, purchasing Advantage would open many more doors for them across the U.S.

For Sixt, its no secret that they want to become more prominent in America but this is a costly and time consuming exercise unless you can purchase a company that already has contracts in place at major U.S. airports, for example Advantage Rent A Car…

So that’s my thinking behind those two, I could be totally wrong but I thought I pop it in writing in case I do turn out to be correct ;-)

With Hertz finding a buyer for Advantage Rent A Car, I believe this will appease the FTC and they will go back to Dollar Thrifty shareholders with a new offer. It’s still an interesting negotiation as Dollar don’t really need to sell but Hertz do need to head off the threat of Avis/Budget for the title of 2nd biggest USA Car Hire supplier and the purchase of Dollar would leave quite a gap between the two, also if negotiations drag on between Dollar and Hertz in to the summer; Avis Budget will have the buying power to compete based purley on cash flow generated by the united Avis USA and Avis European deals.

On the other side I’m not sure Dollar will increase in value, many already think they are punching above their weight in terms of share price, so having an extended round of negotiations will not interest them.

I think by the end of 2012 Dollar Thrifty will be owned by Hertz…. however I could be wrong… :-)

Whatever happens, the first quarter could be very interesting.

regards,

James,

 car hire USA

Hertz Pull Out Of Dollar Bid

Hi all,

Breaking news out of the U.S. yesterday has stated that Hertz have withdrawn their tender offer to buy Dollar Thrifty.

Reports state that Hertz have cited Dollar Thrifty’s plan to commence with a share repurchase program and also current market conditions as the reason for the withdrawal.

However a Hertz spokesman has confirmed that they will continue to pursue FTC clearance for the deal and if approved will re-evaluate its offer.

“Hertz continues to believe that a merger with Dollar Thrifty is in the best interests of both companies,”

“Once anti-trust clearance has been obtained, Hertz will reassess the appropriate price and other terms of the proposed transaction based on Dollar Thrifty’s share repurchase program, Dollar Thrifty’s performance, Dollar Thrifty’s outlook and prevailing market conditions at that time.”

usrentacar.co.uk’s Dollar Buyout Timeline

30/07/10 – Avis Budget Enter Bidding For Dollar Thrifty Car Hire

05/08/10 – Dollar Thrifty Politely Decline Avis Budget Offer

03/09/10 - Budget Car Hire Increase Dollar Car Rental Bid

30/09/10 – Avis Budget’s Response To Hertz’s Comments Over Dollar Thrifty

21/01/11 – Dollar And Avis/Budget Provide Joint Statement Regarding Takeover

22/02/11 – Avis Budget Seeks Dollar Thrifty Clarity

10/05/11 – Hertz Make New Bid For Dollar Thrifty

29/07/11 – My Take On The Dollar Thrifty Buy Out

12/08/11 – Could Dollar Rent A Car Be Losing Patience?

30/08/11 – Letter From Dollar Thrifty To Hertz And Avis Budget

08/09/11 – Dollar Thrifty Set Deadline For Purchase Offers

14/09/11 – Avis Budget Withdraw Bid For Dollar Thrifty Group

06/10/11 – What’s The Hold Up With The Dollar Thrifty Deal?

What will be the next chapter in this epic?

regards,

James

 car hire USA


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