Hertz says no to higher bid for Dollar Thrifty
25 Sep 2010
The world's largest car rental company Hertz Global Holdings yesterday said that it will not raise its offer any further for Dollar Thrifty Automotive Group, a day after arch rival Avis Budget Group raised its bid by 12 per cent.
Hertz said that that its merger agreement to acquire Dollar Thrifty at $50.25 amounting to $1.44 billion was its best and final offer.
Although New Jersey-based Hertz declined to top Avis' latest offer, it said that it has confidence that Dollar Thrifty shareholders would approve the merger transaction at their scheduled 30 September 2010 meeting.
Hertz's announcement came after Avis, the world's second-largest car rental company again raised its offer yesterday, 24 September, for Dollar Thrifty, topping an earlier bid from Hertz by 12 per cent to about $1.6 billion. (See: Avis once again tops Hertz offer for Dollar Thrifty by 12 per cent)
But even as Avis is determined to break the merger agreement signed by Hertz with Dollar Thrifty on 25 April 2010 by topping Hertz' offer for the second time, Dollar Thrifty has kept on rejecting Avis' bids on concerns that Avis may not be able to close the transaction on anti-trust issues.
Both the car rental giants have been sparring over Dollar Thrifty since the past six months, when Hertz made the first move on 26 April by offering to buy its smaller rival for $1.17 billion. (See: Hertz Global to take over rival Dollar Thrifty in $1.17 billion deal)
