Avis once again tops Hertz offer for Dollar Thrifty by 12 per cent
24 Sep 2010
Avis Budget Group Inc, has once again raised its takeover offer for car rental company Dollar Thrifty Automotive Group, topping a bid from rival Hertz Global Holdings by 12 per cent to about $1.6 billion.
Avis raised the cash portion of its bid by 12 per cent from $40.75 to $45.79 per share, while the stock portion remained at 0.6543 of an Avis share, valuing the Oklahoma-based Dollar Thrifty at $53 per share, compared with a 12 September $50 per-share offer from Hertz. (See: Hertz raises offer to $1.56 billion to top Avis's bid for Dollar Thrifty)
New Jersey-based Avis said that it is prepared to offer an even higher price in the absence of the break-up fee that Dollar Thrifty's board has provided for in its agreement with Hertz.
Hertz and Dollar Thrifty had executed a definitive merger agreement on 25 April 2010 that includes the $44.6 million reverse break-up fee in Hertz's proposal.
Hertz has also filed a preliminary proxy statement/prospectus regarding the merger with the Securities and Exchange Commission and Dollar Thrifty has scheduled a special meeting of shareholders on 30 September to vote on Hertz's takeover offer.
Dollar Thrifty has so far refused to enter into discussions with Avis as it feels that a merger with it would raise anti-trust concerns.
