Dollar Thrifty investors try to thwart vote on Hertz buyout - Car Rental News
Dollar Thrifty investors try to thwart vote on Hertz buyout
Car Rental News - 26/08/2010
Investors have asked a judge to block a shareholder vote on the acquisition of Dollar Thrifty.
Investors in Dollar Thrifty Automotive Group Inc., have asked a judge to prevent a shareholder vote on the $1.1 billion acquisition of Dollar Thrifty by Hertz Global Holdings Inc. Dollar Thrifty is the fourth-biggest auto-hire firm in the USA and stockholders reckon the company’s board has failed to give sufficient consideration to a $1.3-billion offer from competing bidder Avis Budget Group Inc.
Lawyers for the unhappy Dollar Thrifty shareholders further claimed that the board had acceded to the demand by Hertz that it not seek any other bids. Judge Leo Strine, of the Delaware Chancery Court, said he would rule later on whether the vote, scheduled for 16 September, will be allowed to go ahead.
At the hearing held in Wilmington, Delaware, Stephen Grygiel, a lawyer for the disgruntled Dollar Thrifty shareholders, said the offer from Hertz is a terrible price for the shares in Dollar Thrifty. California and Florida pensions funds that invested in Dollar Thrifty shares in May sued the company’s directors, in a bid to get a better deal.