Auto Rental News
MenuMENU
SearchSEARCH

Where the Avis, Dollar Thrifty Saga Goes from Here

Avis has yet to enter into a merger agreement with Dollar Thrifty and has not commenced its promised exchange offer for Dollar Thrifty.

by Staff
October 13, 2010
2 min to read


In the latest non-development in the Dollar Thrifty takeover saga Avis has yet to enter into a merger agreement with Dollar Thrifty and has not commenced its promised exchange offer for Dollar Thrifty.

Ronald Barusch, who spent more than 30 years as an M&A practitioner at Skadden, Arps, Slate, Meagher & Flom LLP before retiring this year, offered some insights on where the saga might go from here in a column in the Wall Street Journal.

Ad Loading...

Barusch's first thought is that Hertz will have to wait for its $50 million breakup fee. Hertz only will be paid if Dollar Thrifty signs a merger agreement or recommends an offer. That probably won't happen before antitrust issues with the Avis bid are resolved. The agreement or recommendation must happen within 12 months, and these issues can take a long time to resolve. This now means a significant portion of Avis' antitrust risk has been shifted to Hertz, says Barusch.

Barusch contends that Avis dodged the reverse breakup fee bullet. Avis spent weeks resisting any fee payable for failing to clear antitrust hurdles. When it looked like that might ruin its deal, Avis offered a $20 million reverse breakup fee - compared to Hertz's $50 million fee - at the last minute, but only if Dollar Thrifty signed a merger agreement. Since there is no merger agreement, there will be no fee, at least until the parties have a lot more visibility on the antitrust issues.

In addition, Barusch notes, this deal is likely to go into "radio silence." An exchange offer requires almost every move to be disclosed. However, with no exchange offer, almost no disclosure is required until a material agreement is signed. Dollar Thrifty and Avis recognized that by saying they would not make further announcements except as required by law.

Barusch asks: Did Avis breach a contract by not commencing an exchange offer? He believes Avis will probably be sued over this issue. But what are the damages at this point? Here are the words in one of Avis' press releases: "If Dollar Thrifty stockholders do not approve the Hertz transaction .... Avis Budget will continue to actively pursue the acquisition of Dollar Thrifty, including commencing an exchange offer at our recent offer price no later than 10 business days after the meeting."

But a prior press release containing Avis' promise, could make it illusory: "We will keep such offer open until the end of the year while we continue to pursue antitrust clearance."

More Rental Operations

Back view of a remote driver in front of a screen delivering a car to a location.

Global Carsharing Fleet Projected to Reach 768,000 Vehicles By 2030

A new Berg Insight forecast outlines several business models driving the projected growth in public carsharing worldwide through 2029.

Read More →
green and blue bar graphs compare fleet sales June 2025 versus June 2026
Fleet Acquisitionby Martin RomjueJuly 8, 2026

Rental Car Fleet Sales Show Mid-Year Strength

June gains ensured rental fleets closed out the first half of 2026 in positive territory.

Read More →
Close up of a row of white CUVs in the Surprice Mobility fleet at the Milan airport.

Surprice Mobility Opens Corporate Rental Station at Milan Malpensa Airport

The Milan opening is part of Surprice Mobility's broader strategy to expand its corporate operations while increasing the use of technology across its network.

Read More →
Ad Loading...
Julian Gritsch with an MBA class in a classroom.

Brazilian Executive MBA Targets Growing Domestic Rental Car Industry

Rental car companies face a unique combination of challenges that are rarely addressed in traditional programs.

Read More →
Green Motion team with banner bearing Japanese flag.

Green Motion Expands Into Japan With Master Franchise Agreement

Japan's tourism industry, business travel market, and demand for vehicle rental services are reasons the country represents an important market for the company.

Read More →
ACRA Chairman Sharky Laguana on stage at the ICRS event in Grapevine, Texas.
Legal & Legislativeby Martin RomjueJune 24, 2026

ACRA Carrying Fuller Industry Load As AI and EVs Lurk In Future

The leading car rental professional business group details an active legislative, regulatory, and macro-trends agenda affecting car rental operators.

Read More →
Ad Loading...
Light blue horizontal bar graphs on a chart showing World Cup-related rental car booking trends.
Rental OperationsJune 23, 2026

World Cup Travel Data Shows Longer Car Rentals and More One-Ways

A recent analysis of FIFA bookings found varied demand patterns that influenced rental car pricing.

Read More →
Side view of ICRS speaker Sanchit Garg at podium in front of a floor lit red curtain
Rental Operationsby Martin RomjueJune 22, 2026

A Leveling Force: AI Morphs Into A Rental Car Profit-Seeker

Revenue managers can’t match the emerging AI tools gobbling lots of data that could counter the competitive race to the rate bottom.

Read More →
Photos of Martin Romjue and Denis Gjoni on opposite sides of large headline for the video.
Rental Operationsby Martin RomjueJune 17, 2026

Stop Losing Money On Rental Tolls

Regardless of your rental fleet size and structure, fleet managers, executives, and owners can gain valuable insights into an often-overlooked area of fleet operations.

Read More →
Ad Loading...
Richard Lowden gesturing on stage in front of a red curtain at the Gaylord Texan Resort near Dallas.
Rental Operationsby Martin RomjueJune 12, 2026

Rethink The Future To Avert A Race To The Bottom

Rental car operators heard a sobering industry message and a stern challenge at the close of the International Car Rental Show.

Read More →
Ad Loading...