Dollar Thrifty Automotive Group Inc. issued the following statement Tuesday on Avis Budget Group's May 3, 2010 letter:
"Consistent with its obligations under the Hertz merger agreement and with its fiduciary obligations to shareholders, the Dollar Thrifty board has communicated to Avis Budget that the board is prepared to entertain a 'substantially higher offer' to acquire Dollar Thrifty as proposed by Avis Budget on May 3."
"Separately, Dollar Thrifty said that it regrets that Avis Budget in its May 3 letter mischaracterized prior events and interactions between the two companies. Furthermore, Avis Budget's letter erroneously calculated the breakup fee with respect to the Hertz/Dollar Thrifty merger agreement, which at 3.5 percent of transaction value, is customary and consistent with precedent transactions. Additionally, Dollar Thrifty believes that the other provisions of its merger agreement with Hertz are entirely customary and consistent with applicable law."
"While it is Dollar Thrifty's policy not to comment on matters such as those to which the Avis Budget letter pertains, the company believed that a departure from its policy was necessary in light of the inaccuracies contained in Avis Budget's letter."