Hertz Extends Dollar Thrifty Exchange Offer

citizen |

Hertz, based in Park Ridge, N.J., had been competing with Avis Budget Group Inc. to acquire Dollar Thrifty. Photo Dwight Burdette
Hertz, based in Park Ridge, N.J., had been competing with Avis Budget Group Inc. to acquire Dollar Thrifty. Photo Dwight Burdette

PARK RIDGE, N.J. (AP) - Hertz Global Holdings Inc. is extending its $2.25 billion buyout bid for car rental rival Dollar Thrifty Automotive Group Inc. which has advised its shareholders against accepting the offer.

Hertz said Monday that the offer will now expire on Aug. 5 unless extended again. The offer, which includes $57.60 in cash and 0.8546 shares of Hertz stock for each Dollar Thrifty share, was set to expire on Friday.

Only about 1 million of Dollar Thrifty's 31.2 million shares had been tendered in the offer as of Friday.

Last month, Dollar Thrifty's board unanimously recommended that its shareholders not tender their shares. The Tulsa, Okla., company had agreed in May to cooperate with Hertz to get antitrust clearance for its bid. But it said in June that it was recommending shareholders not take any action because of the uncertainty surrounding the length and outcome of the regulatory process.

The potential Dollar Thrifty acquisition is a sign of the times within the car rental industry, as the sector has been consolidating for years. In 2002, Avis' parent company bought Budget, while Enterprise's parent company acquired Alamo and National in 2007.

Hertz shares fell 62 cents, or 3.8 percent, to $15.65 in midday trading. Dollar Thrifty shares fell 31 cents to $73.64.

Associated Press text, photo and/or graphic material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. Neither these AP Materials nor any portion thereof may be stored in a computer except for personal and non-commercial use. The AP will not be held liable for any delays, inaccuracies, errors or omissions therefrom or in the transmission or delivery of all or any part thereof or for any damages arising from any of the foregoing.

Latest Stories

Latest Podcast

The National Block Club University-Syron Smith