Hertz Steps Up Fight for Dollar Thrifty
The takeover of Dollar Thrifty Automotive Group has spurred a battle between Hertz Global Holdings and Avis Budget Group. This has made for one of the most complicated takeovers so far this year.
The Dollar Thrifty car hire firm is the fourth largest in the US, and there are some significant antitrust issues with the agency being joined with either of its suitors. Hertz is the third largest rental firm, which offered $1.2 billion in a bid for the company last month. Avis Budget is the second biggest, and they say they are preparing a significantly higher counteroffer.
Both Hertz and Avis Budget have starting publicly attacking one another in an attempt to prove their competitive positions. Hertz claims that their bid is less of a risk since they primarily operate in the premium part of the car rental market. This would make them a good match for Dollar Thrifty since the company primarily operates in the budget sector, which is what Hertz wants to expand into. However, Avis Budget is thought to argue that Hertz does target value-conscious travelers through discount rental offerings on travel websites like Priceline.com.
Meanwhile, filed documents have revealed Dollar Thrifty has been in negotiations with Hertz and Avis Budget on and off during the last 3 years. They have continuously expressed their worry about getting government regulators’ approval. Meanwhile, shares in the company have increased recently during the fuss over who will buyout the company, while people familiar with the issue say that Dollar Thrifty is more likely to accept the biggest bid.
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