Dollar Thrifty directors recommend Hertz merger
Both Hertz Global and Avis Budget have been competing to merge with Dollar Thrifty to gain access to the valuable tourist market.
Avis Budget last week raised its latest offer to about $1.52 billion in cash and stock, or around $53 per share. However, Hertz Global has said that it's sticking to its offer of $50 per share.
In a statement released today (26 September) Dollar Thrifty has once more thrown its weight behind the Hertz Global offer, saying: 'Our Board of Directors, in consultation with our financial and legal advisors, has reviewed and considered carefully Avis Budget's revised proposal.
'While the proposal offers our shareholders the potential opportunity to receive greater consideration for their shares than the amount payable under the current terms of our agreed merger with Hertz, Avis Budget has not demonstrated to our satisfaction that its proposed transaction can be completed in a timely manner and that it would adequately protect our shareholders in the event that Avis Budget is unable to obtain the required regulatory approvals.
'Accordingly, our Board continues to recommend that Dollar Thrifty shareholders vote to approve the Hertz merger at the special shareholder meeting to be held on 30 September 2010.'