Second’s Out, Round 3 For Hertz Vs Dollar

Hi all,

News from Tulsa, Dollar’s headquarters in the U.S. is that they are expecting an imminent hostile takeover attempt from Hertz! 

The who will purchase Dollar Rent A Car saga dominated last years car hire USA news, as firstly Budget Rent A Car then more prominently Hertz tried to secure FTC approval for a potential buyout.

Well yesterday in an interview with Tulsa World Dollar Thrifty CEO Scott L Thompson said

Hertz is going to try again. We are calling it ‘H3. The truth is, over the last five years I can’t really tell when one attempt ended and another began.

He also added

Look, Hertz is getting close, and I’m certain that they will get regulatory approval at some time. The FTC does not care that we are not for sale. It is ready to get the regulatory process over. The issue that will decide if there will ever be a transaction is price. If Hertz is willing to pay a price that is in our shareholders’ best interest, then something will eventually happen. If not, it will just be more noise.

In a note to employee’s Thompson also stated

“The good news is that we have continued to perform very well, and that sets the bar high. As I have always told you, performance is our best defense. And performance has worked for five years.”

Sounds like Hertz must be very close to receiving FTC approval, which has cost them a pretty penny to achieve, cash that cannot be easily be written off.

I can see Hertz coming back with a strong offer that may test Dollar’s plans for 2012.

As always I will keep you updated.

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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