Dollar Thrifty takeover unlikely until November - Car Rental News
Dollar Thrifty takeover unlikely until November
Car Rental News - 18/10/2012
US regulatory approval for the Hertz takeover of Dollar Thrifty is not likely to happen this month, reports said this we
US regulatory approval for the Hertz takeover of Dollar Thrifty is not likely to happen this month, reports said this week.
The news came on Thursday via industry publication DealReporter, which said that although Hertz Global Holdings has already complied with all requests from the US Federal Trade Commission that the deal will need more time as agency staff recommendations have yet to be passed on to commissioners.
The news comes nearly two months after Hertz finally bid successfully for the smaller Tulsa-based car firm following a two-year bidding war with rival car hire provider Avis Budget. Both companies had submitted several bids for the fourth-largest US car rental agency, although all were rejected by the board of Dollar Thrifty, prompting the firm to ask both companies to cease bidding unless they could bring forth a “compelling” offer.
But in August, Hertz offered $87.50 for each outstanding share of Dollar Thrifty stock, amounting to some $2.3 billion (£1.4 billion), gaining approval from the board shortly thereafter.
Meanwhile, all of the major US-based car rental giants have finally signed legislation allowing federal officials to close a loophole that allows car hire firms to rent unrepaired vehicles recalled on safety issues.