Avis Budget Group plans to make an offer for Dollar Thrifty Automotive Group that would top Hertz Global Holdings Inc.'s $1.2 billion bid, and Avis is looking to take on more debt to finance the deal, showing how serious it is about its Dollar offer, according to the Wall Street Journal.
The Wall Street Journal article, quoting "people familiar with the matter," stated that Avis would present an offer in late July or early August.
Dollar set an Aug. 18 date for shareholders to vote on its proposed sale to Hertz, which offered about $1.2 billion for Dollar in late April.
Avis in May said it would offer a "substantially higher" bid for Dollar but hasn't made a specific proposal so far.
Avis declined to comment.
As for Hertz, the company is moving forward with its Dollar deal. Last month, Hertz Chairman and Chief Executive Mark Frissora told Dollar President and CEO Scott Thompson that Hertz plans to keep Dollar employees at the Dollar headquarters in Tulsa, Okla. for at least three months after a Hertz-Dollar deal closes.
Hertz will also retain Dollar's base wages, benefits and other forms of compensation for at least 12 months after a Hertz-Dollar deal is concluded, according to the letter that was distributed to Dollar employees and also given to the media. Tulsa-based employees will maintain their severance plan for 15 months.