Avis offering break-up fee to tempt Dollar Thrifty - Car Rental News
Avis offering break-up fee to tempt Dollar Thrifty
Car Rental News - 30/09/2010
Hertz rival offering Dollar Thrifty shareholders reverse termination fee.
Avis Budget Group has announced that it would offer a break-up fee in the latest offer for the Dollar Thrifty Group is rivals Hertz Global Holdings end up abandoning their latest bid to takeover Dollar The latest offer from Avis came on Wednesday. Shareholders in Dollar Thrifty are today voting on whether to accept the 1.5-billion-dollar takeover offer from Hertz.
Hertz and Avis have been in a battle to acquire Dollar Thrifty since Hertz initially agreed to acquire the rental company back in April. Hertz now says it will give up its pursuit of Dollar Thrifty if its latest bid us turned down by shareholders. This latest deal, agreed between Hertz and Dollar Thrifty this month, sweetened the offer from Hertz to roughly 50.95 dollars per share.
Avis Budget has actually offered more for Dollar Thrifty but the Dollar Thrifty board, fearing Avis might not garner anti-trust approval for a takeover, has been supporting the offer from Hertz. Avis’ earlier refusal to pay any reverse termination fee was also cited as a reason for rejecting its offer. Dollar Thrifty is a lucrative acquisition because it is one of a small number of major car hire companies to make a profit in 2009.