Hertz Affirms Agreement Price Is "Best and Final"

Hertz Global Holdings Inc. today affirmed that its merger agreement to acquire Dollar Thrifty at a purchase price equivalent to $50.25 (at the Sept 23 closing share price for Hertz of $10.45) is Hertz's best and final offer. Hertz also expressed confidence that Dollar Thrifty shareholders would approve the merger transaction at their scheduled Sept. 30, 2010 meeting, thereby clearing the way for a closing later this year.

Mark P. Frissora, Hertz's chairman and chief executive officer, said, "Our agreement with Dollar Thrifty provides its shareholders with a substantial premium, deal certainty and a clear path to deal closure by year end. We have made our best and final offer, and we believe that it is in the best interest of Dollar Thrifty shareholders to vote in favor of the transaction on September 30. We have antitrust clearance in Canada, unlike Avis, and our progress with the U.S. government makes us highly confident that we can close the transaction in a timely manner within the framework of our merger agreement. As previously disclosed, we have commenced the divestiture of Advantage Rent-a-Car, and we have identified several potential buyers."

Frissora added, "We expect to close the transaction before the end of the year. A vote against the deal would be a lost opportunity for the Dollar Thrifty shareholders. Avis's proposal raises serious antitrust risks that our agreement does not, which is why Avis has repeatedly refused to match our agreement to pay a substantial termination fee if the transaction fails for antitrust reasons. Failure to approve the Hertz agreement could leave Dollar Thrifty without any transaction, a sub-optimal outcome for its shareholders," Frissora concluded.

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.