Not Thrifty At All: Hertz Has New Offer For Dollar Thrifty (HTZ, CAR, DTG)

I guess shareholders of Dollar Thrifty Automotive Group DTG are feeling a little more extravagant this morning. Hertz Global Holdings Inc. HTZ announced this morning it would be raising its bid for Dollar Thrifty to $72 per share in cash and stock, which is higher than Friday's closing price of $69.69 per share. Hertz and Avis Budget Group Inc. CAR have been in a battle for Dollar Thrifty. Shares of Dollar Thrifty are higher in pre-market trading Monday, trading around $75 per share, as trades are placing bets that there will be a new bid for Dollar Thrifty. The new offer by Hertz is comprised of $57.60 in cash and 0.8546 shares of its common stock. Avis' bid is $45.79 per share in cash and 0.6543 shares of Avis. Commenting on the offer, Hertz Chairman and Chief Executive Officer, Mark P. Frissora said: "We believe that the acquisition of Dollar Thrifty by Hertz would be in the best interests of both companies' shareholders and of rental car consumers, and that it will accelerate Hertz's growth opportunities by leveraging the combined brand portfolio and unparalleled value and service reputations of both companies. To this end, we have today made a superior bid. We are seeking a consensual business combination with Dollar Thrifty, and are proceeding on an accelerated timetable in order to provide immediate and certain value to Dollar Thrifty shareholders." Commensurate with Hertz's desire to expeditiously close this transaction, Hertz is engaged in discussions with the FTC and has commenced a process for the divestiture of its Advantage brand. Hertz is highly confident that it will obtain FTC clearance for its acquisition of Dollar Thrifty and is committed to a fast path forward. Mr. Frissora added, "We have always known that antitrust considerations would be pivotal in any transaction with Dollar Thrifty, and that a combination of Avis Budget and Dollar Thrifty would face serious antitrust obstacles. Avis Budget has been unable to produce a viable antitrust remedy, despite an entire year of discussions with the FTC with no end in sight. In contrast, we are confident we can deliver a compelling proposal to the FTC centered around the divestiture of our Advantage brand, and are committed to working proactively to move through this process as quickly as possible."