Hertz likely to sell off Advantage despite probable loss - Car Rental News
Hertz likely to sell off Advantage despite probable loss
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Car Rental News - 06/08/2012
Car rental firm Hertz is looking to shed its Advantage car rental business despite the likelihood of a loss.
Car rental firm Hertz is looking to shed its Advantage car rental business despite the likelihood of a loss.
Reports said on Friday that the US-based car hire giant is already amid talks with the US Federal Trade Commission amid a bid for small rival firm Dollar Thrifty, prompting the company to advance preparations for the sale of Advantage in the effort of gaining regulatory approval for a Dollar Thrifty takeover.
The company filed a statement with the Securities and Exchange Commission last week for the move in spite of the likelihood taking a loss on Advantage as part of the two-year effort to acquire Dollar Thrifty. Both Hertz and rival Avis Budget Group have been grasping at the competitor since 2010, although all efforts have proved fruitless thus far.
Low-cost rental firm Advantage was acquired by Hertz in 2009 for some $33 million (£21 million) and the company reported weeks ago that it had entered negotiations with a potential buyer. Experts say U-Save Car & Truck Rental is likely to be the interested party.
Meanwhile, Dollar Thrifty asked Hertz last week to make the forthcoming bid a worthwhile deal or to allow the smaller firm to continue operations as a sovereign company and cease fruitless takeover efforts.
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