Dollar Thrifty still favors Hertz buyout bid over rival offer from Avis Budget Group

Dollar Thrifty still supports Hertz buyout offer

TULSA, Okla. — Dollar Thrifty Automotive Group Inc. said Monday it still favors Hertz’s takeover bid over a higher per-share offer from Avis Budget Group.

On Friday Hertz Global Holdings Inc. said it wouldn’t raise its $50.25 per share offer, which is worth about $1.56 billion including restricted stock and stock options and cash. This came after Avis Budget Group Inc. sweetened its own bid for Dollar Thrifty on Thursday to $53 per share.

But Dollar Thrifty said Monday that its board has reviewed Avis’ latest offer and has concerns about whether the deal could be completed in a timely manner and if shareholders would be adequately protected if Avis didn’t receive the necessary regulatory approvals.

Avis said it does not agree with Dollar Thrifty’s position, saying its offer provides the highest value for shareholders. While the company said it recognized the antitrust hurdle in its offer, it suggested there would be significant antitrust hurdles for the Hertz deal as well.

Hertz said it already has antitrust clearance for the deal in Canada and has made progress with U.S. regulators. It also has included a $44.6 million reverse breakup fee in its bid.

Hertz and Avis have been sparring over budget rental chain Dollar Thrifty, which caters to the leisure travelers to which both companies want access. The industry has been contracting and has lost many of the business travelers it once relied on for income.

Dollar Thrifty, based in Tulsa, Okla., has a special shareholders meeting set for Thursday to vote on the Hertz offer. If shareholders approve the deal, Hertz said it hopes to close the purchase by the end of the year.

Avis said, however, if the vote is delayed until December it will continue to pursue antitrust clearance through the end of the year. It also said if the Hertz offer is not approved, Avis will make an exchange offer at its same price within 10 days.

Shares of Dollar Thrifty fell 16 cents to $50.87 in morning trading, while Hertz’s stock added 3 cents to $11.19. Shares of Avis rose 2 cents to $11.16.