Does The Hertz Takeover Of Dollar Rent A Car Have One More Twist In It?

Hi all,

I’m pretty sure in my entire life, including school, I have never written as much on one topic as I have about the Hertz buyout of Dtag (Dollar Rent A Car and Thrifty Car Rental) and just when I thought the material had dried up it looks like there could be one final twist in the saga.

The twist? Well, Hertz filed documents to extend the expiry date of its cash offer which was due to expire yesterday, the new expiry date is now November 5th 2012.

Reason’s cited for this in a few media publications are firstly that perhaps some Dollar share holders believe that they can get Hertz to go even further in their bid and perhaps even get $100 per share, unlikely in my opinion.

The second reason is the delay in getting FTC approval, Hertz must have been pretty confident that the deal would go through however I’m lead to believe that the FTC’s call on this deal is a lot closer than it first appeared.

Although Hertz have agreed to sell off their low cost brand Advantage Rent A Car, the FTC are still concerned that even by selling Advantage the potential buyer will still not be able to compete with the proposed big 3 (Hertz/Dollar/Thrifty, Enterprise, Alamo, National and Avis/Budget). The sale of Dollar/Thrifty will pretty much end consolidation of large USA car hire companies within Northern America so the FTC are not going to be rushed in to the decision.

It is believed that at present the FTC will agree 3/2 to approve the deal, however until the papers are signed could we be in for one last game ending twist?



 car hire USA

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