DTAG Shareholder to Vote Against Hertz Merger

A top Dollar Thrifty shareholder intends to vote against a merger deal with Hertz Global Holdings Inc., according to the Wall Street Journal.

Paul Reeder, president of Boston hedge fund PAR Capital Management Inc., said Hertz's cash-and-stock offer undervalues his holdings. PAR expressed opposition to a Hertz deal as far back as May.

Since then, Hertz has raised its offer 27 percent. But Reeder said he remains unmoved.

Reeder's views could be crucial to Hertz when the deal goes for a vote before Dollar Thrifty shareholders on Sept. 30. The offer must receive a majority of votes cast to win approval, and Dollar Thrifty might not secure that majority.

Hertz reiterated Sept. 28 that its latest offer remains its "best and final," after rival Avis Budget Group Inc. appealed to Dollar Thrifty shareholders to vote against the deal.

In April, Hertz Chief Executive Mark Frissora estimated the combination would generate cost savings of $180 million. RiskMetrics Group has estimated these synergies to be worth $900 million over time, about 70 percent of the total $1.3 billion enterprise value of Hertz's offer.

Comments

  1. Mike [ September 30, 2010 @ 05:03AM ]

    good... I hope you get what you deserve....nothing. Short memory? Remember what happened to the airline industry? Hopefully, Hertz and Avis deal will fail and you'll end up with nothing.

  2. Abdul-Waheed [ September 30, 2010 @ 07:02AM ]

    If 'am one of the shareholder's I will vote

    against the merger, because when this happens it will result in lay-offs and this will add more to the un-eployments we have now

    Thanks

  3. bob angarola [ September 30, 2010 @ 07:51AM ]

    Bravo Mr. Reeder. At last someone with common sense speaking up! The board seems to have a fetish for Hertz for some strange reason.

Comment On This Story

Name:  
Email:  
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

The Customer Isn’t Always Right

Not caving to a customer with a blatant agenda may have consequences, especially for a small rental company that relies on stellar Yelp ratings to advertise. But business integrity must prevail.

The Truth Behind Compact Van Depreciation

Why are large van values holding up better than their compact counterparts, and will it last?

Car Rental’s Call to Action on Autonomous Vehicles

The car rental industry has built-in advantages to support a world with driverless cars, but it needs to take the next step in partnering with autonomous vehicle stakeholders.

Job Finder: Access Top Talent. Fill Key Positions.