Hertz (HTZ) Nears Deal to Buy Dollar Thrifty (DTG) for $2.5B, Ending Multi-Year Saga
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Following weeks of rumors, Hertz Global (NYSE: HTZ) is near a deal to acquire car rental rival Dollar Thrifty Group Inc. (NYSE: DTG) for $87.50 a share, or around $2.5 billion, the Wall Street Journal reported Saturday.
A deal between the two would end the multi-year takeover saga between Hertz, Dollar Thrifty and Avis (NYSE: CAR). The buyout battle started in April of 2010, when Hertz reached a deal to acquire Dollar Thrifty for $41 per share. By the summer of that year, Avis stepped-up with a higher $46.50 per share offer. Bidding continued to rise until Hertz upped the stakes to $72 per share in May 2011. Avis backed away in the Fall of 2011, leaving Hertz and Dollar Thrifty sharholders to hammer out a deal. Dollar Thrifty sharholders saw the value of their holdings continuing to rise, so a deal proved hard.
To get a deal done Hertz went to Dollar Thrifty's largest shareholders seeking a price they would sell out at - "$87 or more" was their answer, according to recent reports.
A deal price of $87.50 per share would come at a 7.4% premium to Dollar Thrifty's closing price on Friday.
No formal merger has been announed yet. It could come as soon as this weekend.
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A deal between the two would end the multi-year takeover saga between Hertz, Dollar Thrifty and Avis (NYSE: CAR). The buyout battle started in April of 2010, when Hertz reached a deal to acquire Dollar Thrifty for $41 per share. By the summer of that year, Avis stepped-up with a higher $46.50 per share offer. Bidding continued to rise until Hertz upped the stakes to $72 per share in May 2011. Avis backed away in the Fall of 2011, leaving Hertz and Dollar Thrifty sharholders to hammer out a deal. Dollar Thrifty sharholders saw the value of their holdings continuing to rise, so a deal proved hard.
To get a deal done Hertz went to Dollar Thrifty's largest shareholders seeking a price they would sell out at - "$87 or more" was their answer, according to recent reports.
A deal price of $87.50 per share would come at a 7.4% premium to Dollar Thrifty's closing price on Friday.
No formal merger has been announed yet. It could come as soon as this weekend.
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Michael Caliazzo on Aug 26, 2012 01:49 PMMark as Spam | Reply to this comment
Great deal andd we know this is forward thinking.