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

Letter From Dollar Thrifty To Hertz And Avis Budget

Hi all,

Last week Dollar Thrifty sent a letter to both Hertz and Avis Budget asking them to reply with their best and final offers to purchase the Car Hire USA company.

I’ve managed to see a copy of this letter which I have posted below

August 21, 2011

Mr. Ronald L. Nelson

Chairman and Chief Executive Officer Avis Budget Group,

Inc. 6 Sylvan Way Parsippany,

New Jersey

07054

Mr. Mark P. Frissora

Chairman of the Board and Chief Executive Officer Hertz Global Holdings,

Inc. 225 Brae Boulevard Park Ridge,

New Jersey

07656

Dear Ron and Mark:

As you are aware, Dollar Thrifty has worked cooperatively with each of Avis Budget and Hertz for many months in an effort to obtain antitrust regulatory clearance for a possible business combination transaction. We understand that these efforts have been fruitful, and believe that each of Avis Budget and Hertz is well positioned to complete the regulatory process in a manner that would permit a combination to be completed with limited economic impact. We appreciate the efforts made by each of your companies as well as your continued interest in Dollar Thrifty.

In light of the regulatory progress that has been made, we believe that it is time to ascertain whether a transaction can be accomplished with Avis Budget, Hertz or another party on terms that our Board of Directors determines are in the best interests of Dollar Thrifty and its shareholders. Accordingly, our Board has determined that it will solicit best and final definitive proposals for submission in early October. Based on the results of this process, we will consider what actions would be in the best interests of Dollar Thrifty and its shareholders. While the details of our process will be furnished separately by our financial advisors in the coming days, I wanted to provide each of you with advance notice in order to give your companies ample preparatory time in which to complete your regulatory efforts. As you can appreciate, in view of the unprecedented opportunity that each of Avis Budget and Hertz has had to assess and mitigate in advance the antitrust regulatory risks of a transaction with Dollar Thrifty, any proposal that requires our shareholders to assume any portion of such risk is unlikely to be acceptable to our Board or shareholders.

Please do not hesitate to let me know if there are any questions.

Very truly yours,

DOLLAR THRIFTY AUTOMOTIVE GROUP, INC.

Scott L. Thompson
President and Chief Executive Officer

A very interesting letter I’m sure you’ll agree. On a positive note it does look like the end is near in this epic saga.

Who do you think will purchase Dollar Thrifty?

Kind regards,

James,

 car hire USA


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