After reporting in October that it planned to operate independently after being pursued as a takeover target by Hertz and Avis Budget Group, Dollar Thrifty reported Feb. 21 that it is extending its shareholder rights plan until May 30, 2013.
The plan allows shareholders to buy Dollar Thrifty at a 50% discount if an investor acquires at least 20% of the shares or adds to an existing 20% holding without board approval.
Scott L. Thompson, chairman, president and CEO, said, "When our board of directors adopted the Rights Plan last year, we believed that it would be a short-term measure pending clarification of the antitrust regulatory processes in respect of the applications by Hertz and Avis Budget to purchase our common stock. Regrettably, almost one year later, complete clarity has not been achieved.
"As the circumstances underlying the determination to adopt the Rights Plan have not fundamentally changed, our board believes that it would be imprudent and inconsistent with its fiduciary duties not to maintain the protections of the Rights Plan as we monitor the actions of our competitors. The scarcity value of our long-established brands, unleveraged capital position and cash rich balance sheet requires protection from parties that may not be acting in the best interests of all of our stockholders."
The company reported earlier this month that it had completed a $100 million stock-repurchase agreement of 1.45 million shares at an average price of about $68.91.