Rebecca Cook/ReutersHertz and Dollar-Thrifty operate rent-a-car lots near the Detroit Metropolitan airport in Romulus, Mich.
The car rental company Hertz announced on Thursday that it was withdrawing its offer for the Dollar Thrifty Automotive Group, citing market conditions and Dollar Thrifty’s decision to pursue a share buyback program.
Still, Hertz, which has been seeking a deal with Dollar Thrifty for many months, said it was interested in a deal if it could gain regulatory clearance and settle on a fair price.
“Hertz continues to believe that a merger with Dollar Thrifty is in the best interests of both companies,” the company said in a statement.
Hertz said that “once antitrust clearance has been obtained, Hertz will reassess the appropriate price and other terms of the proposed transaction based on Dollar Thrifty’s share repurchase program, Dollar Thrifty’s performance, Dollar Thrifty’s outlook and prevailing market conditions at that time.”
Earlier this month, Dollar Thrifty announced that it had not received a suitable offer and was taking itself off the market. It also said it was pursuing an independent strategy, which included a buying back as much as $400 million in stock.
The decision by Hertz to officially bow out closes — at least temporarily — a multiyear tale for Dollar Thrifty.
Hertz, which began discussions with Dollar Thrifty back in 2009, first submitted a bid of $41 a share in April 2010. A bidding war ensued, and by late September 2010, Avis had upped its offer to $53 a share, trumping the Hertz bid by several dollars.
But the sale was bogged down by regulatory hurdles. While Avis tried to work through antitrust issues, Hertz returned to the table in May with a $72 a share offer, valued at $1.91 billion at the time.
The process continued to drag on, as Hertz also struggled to get approval from the Federal Trade Commission. Weary of the protracted battle, Dollar Thrifty asked the bidders to submit their best and final offers in August.
In a letter to Avis and Hertz, Dollar Thrifty’s chief executive, Scott L. Thompson, expressed optimism that a deal could be made. He cautioned, however, that Dollar Thrifty’s shareholders did not want to be on the hook for any antitrust risks like a higher breakup fee.
In a sign of frustration, Mr. Thompson also noted that the company had spent some $30 million over the last few years dealing with the barrage of takeover offers.
But Hertz did not raise its offer, while Avis officially backed out in September.
Dollar Thrifty concluded in October that it was better to go it alone. In a statement, Mr. Thompson said, “The fact remains that they have not made a proposal that addresses our board’s requirements.”
He added, “Having received no acceptable offer after conducting an unprecedentedly open process with clearly articulated requirements, it is time for us to move forward on a stand-alone basis.”
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