Dollar Thrifty seeks end to bidding war

Dollar Thrifty seeks end to bidding war

Car rental firm Dollar Thrifty has said it is looking to resolve its ownership position by the autumn as it seeks to put uncertainty about its future aside.

The company, the subject of a takeover battle between rivals Hertz and Avis Budget, has announced it wants best and final offers from the two suitors by early October.

Dollar Thrifty said both car rental companies have made substantial progress with regulatory reviews and that the time had come for “best and final definitive proposals”. Chief executive Scott Thompson said: “Continuing uncertainty is in no one’s best interest.

“Based on the results of this process, we will consider what actions would be in the best interests of Dollar Thrifty and its shareholders,” Thompson said in a letter to the CEOs of both Avis and Hertz.

The bidding war for Dollar Thrifty has dragged on for 16 months. Hertz offered close to $2.1 billion for the company May, taking advantage of Avis' problems getting regulatory clearance for a rival bid.

Since then Avis has announced plans to take over its European namesake for around $1 billion.

The US Federal Trade Commission asked Hertz for additional information regarding its proposed takeover of Dollar Thrifty earlier this month. Avis is still seeking antitrust approval for its offer.

Dollar Thrifty said it was positioned for “continued strong performance in 2012.”

“We are optimistic about our future but it’s clear that bringing closure one way or another to the process with Hertz and Avis is in the best interests of our shareholders, the company and our employees," the company added.

Comments

This is a community-moderated forum.
All post are the individual views of the respective commenter and are not the expressed views of Travel Weekly.
By posting your comments you agree to accept our Terms & Conditions.

More in News