POSTED: 05:53 a.m. HST, Aug 27, 2012
NEW YORK >> Rental car company Hertz is buying its rival Dollar Thrifty Automotive Group Inc. for approximately $2.3 billion, giving it more ways to attract business and leisure travelers and an expanded international presence.
Dollar Thrifty's stock jumped 7 percent in premarket trading Monday.
Hertz Global Holdings Inc. said late Sunday that it will pay $87.50 for each Dollar Thrifty share. That's an 8 percent premium to the company's closing price of $81 per share on Friday.
Media reports had said last week that Hertz of Park Ridge, N.J., was considering a new bid for Dollar Thrifty, a Tulsa, Oklahoma-based company it had pursued for two years.
The push-and-pull between two of the nation's largest car rental companies started in 2010. Avis Budget Group was also in the mix, pursuing a bid for Dollar Thrifty for more than a year.
Avis dropped its bid nearly a year ago citing market conditions. Then in October of last year, Hertz dropped its bid, too. But Dollar Thrifty didn't trust that the years of attempts were over. In February, it extended its shareholder rights plan known as a "poison pill" — a maneuver designed to deter any unsolicited attempts to take over the company — through May 2013.
Hertz Chairman and CEO Mark P. Frissora said in a statement that the Dollar Thrifty buyout will give it access to two well-known rental car brands — Dollar and Thrifty — as well as make it a more competitive player in Europe and other markets overseas.