Avis, Dollar Thrifty to co-operate on anti-trust concerns - Car Rental News
Avis, Dollar Thrifty to co-operate on anti-trust concerns
Car Rental News - 07/10/2010
Dollar Thrifty is to work closely with Avis Budget in a bid to alleviate authorities’ concerns about a market monopoly.
Dollar Thrifty Automotive is to work closely with Avis Budget Group in a bid to address the concerns of anti-trust authorities about a possible takeover of Dollar Thrifty by Avis Budget. The announcement was made just days after Dollar Thrifty shareholders voted to reject a takeover offer from Hertz.
On Tuesday, Avis announced that it remained committed to pursuing its acquisition of Dollar Thrifty on the terms of an earlier offer valued at $53 per share. In September, Avis sweetened its previous offer. It raised the existing offer of $40.75 per share to a combination of $45.79, plus 0.6543 shares in Avis for each Dollar Thrifty share.
Dollar Thrifty had continued to support a financially less-lucrative offer from Hertz because of concerns that Avis Budget’s offer would fail to gain clearance from anti-trust authorities. Dollar Thrifty has now asked Avis Budget to refrain from making an official offer while the two firms work with authorities to address their concerns.
Avis Budget and Hertz have been locked in a fierce bidding war for Dollar Thrifty since Hertz made an initial offer in April. Shareholders in Dollar Thrifty recently voted against the Hertz offer. Hertz has said it will issue no new offers.