Dollar Thrifty Politely Decline Avis Budget Offer

Hi all,

I reported last week about the Budget Avis Group making a counter offer for Dollar Thrifty, the offer they made was more than the orginal offer made by Hertz. However last night the offer was rejected by Dollar Thrifty in favour of the lesser Hertz offer.dollarrentacar

The reason behind this from the Hertz point of view is that they believe their offer will have less objections from regulators due to the fact that their presence on airport is less than Avis Budget.

However from what I understand Dollar Thrifty are concerned that Avis Budget are not willing to enter in to a “reverse termination fee” where if Avis Budget were unable to or pulled out of the deal, Dollar Thrifty would be compensated. Hertz have agreed to this clause.

From what I have read, if Avis Budget agree to this addition the deal could be on.

I wait for the next instalment of the latest car hire soap opera.



U.S. Rent A

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Avis Budget Enter Bidding For Dollar Thrifty Car Hire

Last night the Avis Budget Group entered in to the bidding for Dollar Thrifty, with a whooping bid of$ 1.33 Billion, this trumps the earlier Hertz bid of $1.17 Billion.dollarthrifty

A letter sent to Dollar Thrifty’s top bosses from Avis Budget’s group chairman and CEO Ronald Nelson stated: “We are prepared to put forward an offer today for Dollar Thrifty that clearly constitutes a superior proposal under that [Hertz] merger agreement.”

He continued: “We are prepared to enter into a merger agreement that contains substantially the same terms as the Hertz merger agreement, but which includes removing the matching rights, eliminating the break-up fees, and increasing the commitment to secure antitrust approvals.

“In short, we believe that the higher purchase price we are offering, combined with the terms of our proposed merger agreement, makes our offer a superior one from the perspective of Dollar Thrifty and its shareholders.”

Whomever manages to purchase Dollar Thrifty will decrease the huge advantage Enterprise owned Alamo Rent A Car have on the U.S. market at present.

For those clever bosses at Dollar Thrifty who took shares in the company rather than performance related bonuses must be very happy at the moment.

Who would you rather see take over at Dollar Thrifty?

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