Avis outbids Hertz for Dollar Thrifty with $1.33 billion offer
29 Jul 2010
The second largest US car rental company bhind Hertz, Avis Budget Group Inc, , yesterday offered to buy rival Dollar Thrifty Automotive Group Inc for about $1.33 billion, topping a $1.17-billion bid by Hertz Global Holdings, made in in April this year.
Avis made an unsolicited proposal to buy Dollar Thrifty for $46.50 per share comprising of $39.25 in cash and 0.6543 shares of Avis Budget stock currently priced at $7.25, valuing the Oklahoma-based Dollar Thrifty at about $1.33 billion.
Avis said that its$46.50 per share offer include the proceeds of a pre-closing special dividend to be paid by Dollar Thrifty and in line with Hertz offer.
But the Avis offer is still $2 below Dollar Thrifty's closing price on the New York Stock Exchange yesterday.
In April 2010, Hertz, the world's largest car rental company, offered to take over rival Dollar Thrifty for $41 per share or about $1.17 billion in cash and stock. (See: Hertz Global to take over rival Dollar Thrifty in $1.17 billion deal)
Hertz's offer is currently worth $39.86 a share and Avis's is a premium of about 17 per cent over the Hertz offer.
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