Hertz Global Holdings said on Monday that it had made a new bid for Dollar Thrifty Automotive Group, offering $2.24 billion.
Hertz approached Dollar Thrifty last year with an offer of $1.5 billion. But shareholders of Dollar Thrifty quickly rejected the overture, paving the way for a deal with the Avis Budget Group. That deal, valued at roughly $1.8 billion now, has remained in limbo as the two companies await regulatory approval from the Federal Trade Commission.
Hertz’s cash-and-stock offer of $72 a share represents a 24 percent premium to the deal with Avis. It is also 26 percent more than Dollar Thrifty’s 90-day average stock price.
“We believe that the acquisition of Dollar Thrifty by Hertz would be in the best interests of both companies’ shareholders and of rental car consumers, and that it will accelerate Hertz’s growth opportunities by leveraging the combined brand portfolio and unparalleled value and service reputations of both companies,” Mark P. Frissora, the chief executive of Hertz, said in a statement. “We have today made a superior bid.”
Hertz also said it had begun talks with the trade commission as it looked to cement a deal. In an effort to win over regulators, Hertz is moving forward with a plan to sell off its Advantage brand.
“We have always known that antitrust considerations would be pivotal in any transaction with Dollar Thrifty, and that a combination of Avis Budget and Dollar Thrifty would face serious antitrust obstacles,” Mr. Frissora said. “Avis Budget has been unable to produce a viable antitrust remedy, despite an entire year of discussions with the F.T.C. with no end in sight.”
Hertz hired Barclays Capital, Lazard, Bank of America Merrill Lynch and Deutsche Bank Securities as financial advisers, and Cravath, Swaine Moore, Debevoise Plimpton and Jones Day as legal counsel.
It also hired William Blair to be the financial adviser in divesting Advantage.
Article source: http://feeds.nytimes.com/click.phdo?i=219120bc1bcfe1eff85fc13e46b51494
Speak Your Mind
You must be logged in to post a comment.