Avis Budget Drops Bid for Dollar Thrifty

In a regulatory filing today, Avis Budget Group Inc. said it is dropping its bid for Dollar Thrifty Automotive Group because of “current market conditions.”

Avis Budget Group’s offer, made in September 2010, consisted of a combination of $45.79 in cash and 0.6543 shares of common stock per Dollar Thrifty share, or approximately $1.5 billion in aggregate based on stock prices at the time.

Since that September 2010 offer, Hertz launched an exchange offer to purchase Dollar Thrifty for a combination of cash and stock for $72.00 per share consisting of $57.60 in cash and 0.8546 shares of Hertz.

Hertz Global Holdings Inc. is still in the running to buy the company.

In the regulatory filing, Avis Budget stated, “We have made significant progress toward obtaining U.S. regulatory clearance for the acquisition of DTG, and we believe that such regulatory clearance could be obtained. Nonetheless, we have decided not to pursue a transaction at this time in light of current market conditions.”

Last month Dollar Thrifty sent a letter to both companies asking them to submit “their best and final offers.” Dollar Thrifty had set a deadline of October 10 for both the companies to make their final buyout offers.

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

Why Do We Visit Capitol Hill?

Members of the American Car Rental Association met with U.S. senators, representatives, and their aides last week. Here’s why bringing the message to this forum matters.

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?

Job Finder: Access Top Talent. Fill Key Positions.