Hertz raises Dollar Thrifty offer to top Avis Budget
Hertz has offered the equivalent of $50.00 per share, comprising $43.60 in cash (including approximately $6.87 per share to be paid by Dollar Thrifty as a special cash dividend immediately prior to the transaction closing) and 0.6366 of Hertz stock.
This follows the move by Avis earlier this month to raise its offer to $1.36 billion for Dollar Thrifty.
Hertz Global originally offered around $1.17 billion in cash and stock back in April. In a statement, the company said that the other key provisions of its original merger agreement remain unchanged, including a $44.6 million reverse termination fee payable to Dollar Thrifty if required antitrust clearance is not obtained.
Hertz added that it has already begun the process of divesting of its Advantage Rent-a-Car brand in a measure to help win anti-trust approval.
Mark Frissora, Hertz chairman and CEO said: 'We are pleased to reach an agreement that reflects the significant improvement in Dollar Thrifty's operating performance since the initial merger agreement was executed on 25 April 2010, and is further supported by Hertz's divestiture commitment to assure timely completion of the transaction.'
He added: 'We have begun the process of divesting Advantage Rent-a-Car, and we already have received interest from several unsolicited parties. It is clear to us that brand divestiture will be required to complete a transaction involving Dollar Thrifty that satisfies regulators' concerns.'
Hertz said that Dollar Thrifty shareholders would vote on the merger in a meeting postponed from 16 September to 30 September.