Cendant Announces Proposal for Outstanding Avis Shares

Cendant Corp. has submitted a preliminary, non-binding proposal to acquire the remaining outstanding Avis shares for $29 per share in cash. Avis Group Holdings has formed a special committee composed of independent directors to consider the proposal.

Right now, there are approximately 25.6 million shares of Avis stock not owned by Cendant, making the transaction worth around $750 million.

Cendant currently owns 18% of Avis’ outstanding common shares as well as preferred stock in an Avis subsidiary. Theses preferred shares are convertible to Avis stock.

Assuming that certain earnings are met, the converted shares would give Cendant a 20% voting interest and a 33% economic interest in Avis.

Comment On This Story

Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.


Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Market Forces Driving Car Rental in 2018

An analysis of the conference calls of Avis Budget Group and Hertz Global Holdings reveal trends and initiatives involving fleet right sizing, pricing, ancillary revenue opportunities, and renting to ride-hailing drivers.

Trends Moving the Truck Market

Storylines that emerged from the 2018 Work Truck Show include the increasing need for on-site productivity, inclusion of active safety systems in trucks, DPF frustrations affecting product decisions, data management, and the growing link between fleet management and company revenue.

MIT Study Reinforces the Newfound Importance of Fleet

Uber and Lyft drivers make far less when factoring vehicle expenses, though the actual numbers are now in dispute. A proper lifecycle cost analysis would’ve helped, and shows the benefit of collaboration with fleet professionals.

Job Finder: Access Top Talent. Fill Key Positions.