Dollar Thrifty's Shareholders Reject Hertz's $1.46 Billion Takeover Offer

Dollar Thrifty Automotive Group Inc. shareholders today rejected Hertz Global Holdings Inc.’s $1.46 billion takeover offer.

The vote, at a special shareholders meeting in Chicago, was 11.8 million shares for the Hertz offer compared with 13.8 million shares against it, according to Bloomberg News.

Hertz stated yesterday it would immediately terminate the merger agreement with Dollar Thrifty if shareholders voted against the proposal.

Avis Budget said yesterday if the Hertz deal does not go through it “will continue to actively pursue the acquisition of Dollar Thrifty, including commencing an exchange offer at our recent offer price no later than 10 business days after the meeting.”

Avis Budget said it “will continue to actively pursue antitrust clearance. As previously disclosed, Avis Budget has committed to sell assets representing $325 million of revenues (of which not more than $250 million are U.S.), demonstrating our commitment to attaining antitrust approval.”

Additionally, Avis Budget said it would add a $20 million breakup fee to its Dollar Thrifty merger deal if the proposal does not win regulatory approval.

Dollar Thrifty released this statement:

Dollar Thrifty Automotive Group, Inc. today announced that the Company did not obtain the requisite votes to execute its definitive merger agreement with Hertz Global Holdings, Inc. ("Hertz") at the special meeting of shareholders held today.

The final vote results, which were certified by IVS Associates, Inc., the inspector of election, totaled 11,811,154 votes for and 13,830,126 against, with 4,735 abstentions.

Scott Thompson, president and CEO of Dollar Thrifty Automotive Group, Inc., commented: "We respect the vote of our shareholders, and remain confident in our ability to continue to deliver outstanding value for them. The Dollar Thrifty board and management team are focused on building on our track record of superior operating performance to drive continued growth. We will evaluate all of our options going forward in order to maximize value for Dollar Thrifty shareholders."

Dollar Thrifty is being advised by J.P. Morgan and Goldman, Sachs & Co. and the law firm of Cleary Gottlieb Steen & Hamilton LLP.

Dollar Thrifty Automotive Group Inc. shareholders today rejected Hertz Global Holdings Inc.'s $1.46 billion takeover offer.

The vote, at a special shareholders meeting in Chicago, was 11.8 million shares for the Hertz offer compared with 13.8 million shares against it, according to Bloomberg News.

Hertz stated yesterday it would immediately terminate the merger agreement with Dollar Thrifty if shareholders voted against the proposal.

Avis Budget said yesterday if the Hertz deal does not go through it "will continue to actively pursue the acquisition of Dollar Thrifty, including commencing an exchange offer at our recent offer price no later than 10 business days after the meeting."

Avis Budget said it "will continue to actively pursue antitrust clearance. As previously disclosed, Avis Budget has committed to sell assets representing $325 million of revenues (of which not more than $250 million are U.S.), demonstrating our commitment to attaining antitrust approval."

Additionally, Avis Budget said it would add a $20 million breakup fee to its Dollar Thrifty merger deal if the proposal does not win regulatory approval.

Comments

  1. Lou [ September 30, 2010 @ 02:10PM ]

    The rejection of the Hertz offer, just goes to show the williness of the Dollar Thrifty shareholders to continue their sprial downward. They will end up with next to nothing.

  2. mike [ September 30, 2010 @ 03:01PM ]

    how do you figure that when a little over 2 years ago the share were worth about 60 cents. the company was in a loss and now they are making record profits. I think it is wise business not to sell out, think of all the jobs that were just saved!!!

  3. A.R. [ September 30, 2010 @ 03:16PM ]

    Their spiral downward? As in they have been one of the only rental companies to post consistent profit in a down economy.

  4. YH [ September 30, 2010 @ 04:27PM ]

    Lou...you have no clue what's going on here do ya? Dollar/Thrifty has been the most profitable since the beginning of our economic downfall...This goes to show that Dollar/Thrifty has all the power right now to do what they want...they are the hot topic out in the rental car world...and whomever decides to put up a good enough offer or bid that will not only be of significant to the buyer but as well as to Dollar/Thrifty existing employees and shareholders...

  5. Rich [ September 30, 2010 @ 08:53PM ]

    Careful what you wish for. If DTG is taken over by Avis, you can be sure thousands of jobs will be gone! DTG shareholders should reject all takeover offers and concentrate on the long term.

  6. GD [ September 30, 2010 @ 08:56PM ]

    Not even close to the most profitable, read the article above this one.

  7. MC [ October 1, 2010 @ 04:12AM ]

    This really surprised me, Hertz and Avis have been in a bidding war to purchase DTAG and now( if they remain true to their word Hertz is out of the game)leaving Avis as the only remaining suitor. It well be very interesting to see what happen now... as we all know profitability in the car rental business can be an allusive monster..

  8. bob angarola [ October 1, 2010 @ 07:43AM ]

    I said it before and I'll say it many more times: "Jim Philion and Bill Lobeck, where are ya when we need ya?!!"

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