Hertz offer for Dollar Thrifty rejected again - Car Rental News
Hertz offer for Dollar Thrifty rejected again
Car Rental News - 13/10/2011
Hertz’s most recent offer for car hire firm Dollar Thrifty has once again been rejected.
Dollar Thrifty’s chief executive Scott Thompson said that the proposal from Hertz Global Holdings did not meet its bid requirements before the deadline it had set several weeks ago. He said that this came despite being unprecedentedly open about the bidding process and added that the time has come for Hertz to move on as a stand-alone entity.
Despite the remarks from Mr Thompson, in which he also said the offer was likely to meet problems with antitrust regulators, the Dollar Thrifty board is set to review any changes to the proposal that Hertz may bring to the table.
The news comes after the first of Hertz’s previous bids was rejected in September last year, followed by another the following June, which was also not approved by shareholders.
And following the announcement of Wednesday’s rejection Dollar Thrifty shares fell immediately by as much 3.2 per cent at one point, and by lunchtime in New York on Wednesday its shares sat at $59.26 (£37.64). In contrast, Hertz shares climbed to $10.35 (£6.57) on the news, an increase of 2.7 per cent.
Meanwhile, Dollar Thrifty is set to begin a repurchasing program for its shares worth some $400 million (£254 million).