Hertz Approves One-Year Shareholder Rights Plan

Hertz Global Holdings Inc. recently announced that its board of directors has unanimously adopted a one-year shareholder rights plan.

Hertz has observed unusual and substantial activity in the company’s shares. This Rights Plan is intended to ensure that the board remains in the best position to perform its fiduciary duties and to enable all Hertz shareholders to receive fair and equal treatment, according to Hertz.

In addition, the Rights Plan is also designed to allow all Hertz shareholders to realize the long-term value of their investment by reducing the likelihood that any person or group would gain control of Hertz through open market accumulation — without appropriately compensating the company’s shareholders for such control or providing the board sufficient time to make informed judgments, says the company.

Hertz board and management team are focused on enhancing shareholder value, and the board believes the Rights Plan will preserve the company’s ability to continue implementing its strategic initiatives to drive improved returns and value creation.

These initiatives include the integration of Dollar Thrifty, expanding Hertz’s off-airport footprint, the introduction of new brands to meet consumer needs, building on the company’s success with Donlen leasing, the roll-out of new rental technology, the company’s lean cost management programs, and the evaluation of potential changes to the company’s operating structure and capital allocation to further support the company’s long-term strategy, says Hertz.

The Rights Plan — which was adopted following evaluation and consultation with the company’s outside advisors — was not approved in response to any specific takeover bid or other proposal to acquire control of the company, says Hertz. Under the Rights Plan, the rights will generally become exercisable only if a person or group acquires beneficial ownership of 10% or more of the company’s common stock, according to Hertz.

Details about the Rights Plan will be contained in a Form 8-K to be filed by Hertz with the U.S. Securities and Exchange Commission.

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