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Teamsters Call On Dollar Thrifty Board to Redeem Poison Pill

Board's contradictory strategy erodes shareholder value; threatens merger options, say Teamsters.

by Staff
August 1, 2011
2 min to read


The followingpress release was issued today by the International Brotherhood of Teamsters.

WASHINGTON - In a July 11, 2011 letter to the Dollar Thrifty Group Board of Directors, International Brotherhood of Teamsters General Secretary-Treasurer C. Thomas Keegel called on the company to redeem its poison pill and follow a sound strategy to maximize shareholder value and advance the interests of the company and its stakeholders.

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Dollar Thrifty investors lost out last year when a bidding war by rival companies Hertz and Avis was thwarted by an incoherent board strategy. A recommended offer by Hertz was rejected by shareholders after the board refused to seriously consider a higher price from Avis. Hertz walked away, and Avis began to work with Dollar Thrifty on antitrust review without any formal offer on the table.

Then, less than a year later, Hertz returned with a higher offer. This offer was immediately rebuked by the board, which implemented a poison pill provision less than a week after the offer. At the same time, the board announced it would cooperate with Hertz in its anti-trust review. These conflicting actions confused not only investors but Avis, which abandoned its takeover efforts in favor of acquiring its European operation. The share price, which had risen on hopes of a higher offer from Avis and a potential bidding war, fell to the level of the Hertz offer and has remained there ever since.  

"How can Dollar Thrifty investors or employees have confidence in this board when they can't seem to figure out which way is up?" Keegel said. "The Teamsters urge the board to immediately redeem the poison pill and begin negotiations with Hertz for a friendly offer. Teamsters understand that you will not get the deal you want without negotiating for it."

Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women in the U.S., Canada and Puerto Rico including 11,000 workers in the rental car industry.

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