No 'Final' Bid from Hertz for Dollar Thrifty

In a report from Bloomberg, Dollar Thrifty Automotive Group did not receive Hertz’s final bid offering by today’s 5 p.m. deadline. In an announcement on Aug. 14, Dollar Thrifty formally asked Hertz and Avis, which dropped its bid on Sept. 14, for the "final" bids in letters that were sent to both companies.

A Hertz spokesperson told Bloomberg that “Hertz remains interested” and that it is continuing to pursue merger approval from U.S. Federal Trade Commission (FTC), which made a second request for more information from Hertz in August.

Back in May, Hertz had made what it called a "final" exchange offer, but Dollar Thrifty advised its shareholders to not take any action on the offerings of $72 per share.

Dollar Thrifty subsequently announced that it is taking the company off the market.

The Bloomberg article states that Hertz makes up 20 percent of the market share behind Enterprise at 40 percent. Dollar Thrifty accounts for 5.7 percent of industry sales.

Comments

  1. mconlon [ October 10, 2011 @ 05:30PM ]

    What I find most interesting is Enterprise at 40% market share.

  2. JRich [ October 10, 2011 @ 09:57PM ]

    No way Hertz is going to pay $72/share now. Three years ago DTG was worth $0.60/share. All Hertz has to do is wait 1-2 quarters and DTG will be worth significantly less than it is now. Its assets are depreciating and it probably doesnt have the credit or buying power to replenish its aging fleet. What changed in three years that validated a 1000% increase in stock price??? They didnt increase market share, fleet size, revenue or profit at all. Now that Avis is out of the running what is holding Hertz back from offering an extremely low ball offer?

  3. Frank [ October 11, 2011 @ 07:30AM ]

    You're amazingly uninformed JRich. The market share HAS increased, some, as have the revenue, fleet size, and profit (I work for DTAG). The stock price is high because of the takeover bids, but Dollar-Thrifty can and will do well as a stand-alone company. Our fleet isn't "aging" as you put it at all, and we have a higher customer satisfaction rate than any of our competitors. Learn before you speak dude!

  4. JRich [ October 11, 2011 @ 07:48AM ]

    So with all that great performance you will be buying your companies stock at $59/share??? I dont think so. By the way, according to JD Power Enterprise has the highest customer satisfaction of any rental car company.

  5. al [ October 11, 2011 @ 08:55AM ]

    jrich we are not talking about who has the highest customer satisfaction. dtag will make it thru as a stand alone company and survive they did it before and will do it again. sure the stock drop because of the news but remember only time will tell.

  6. orodriguez [ October 16, 2011 @ 07:59PM ]

    it is no time to accept any offer from Hertz any longer , DTG will perform better away from the sharks . Good luck !!!!!

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