A Long Time Coming: Hertz May Buy Dollar Thrifty

Before you go, we thought you'd like these...
Before you go close icon

It seems like decades since Hertz (NYSE: HTZ) began to jockey with its primary rival–Avis Budget Group (NYSE: CAR)–for the right to own Dollar Thrifty Automotive Group (NYSE: DTG) which is among the second tier companies in the car rental industry. If market share is critical to profit, then the battle's outcome could be important. And, Hertz appears to have prevailed, according to Bloomberg.

The news service reports:

An offer in the high $80s a share will be presented to both boards over the weekend. The deal may provide less than a 10 percent premium over Tulsa, Oklahoma- based Dollar Thrifty's closing price yesterday of $81.  It also may fall apart like those that have preceded it.

There have been offers and counter-offers for Dollar Thrifty in the past. So, Avis may come back again.

Dollar General's 52-week high is $84.91. In early 2011, before initial offers, the shares were below $48. They spiked to $84 in June of last year. When it appeared that there would be no buy-out, Dollar General's shares fell back to $54 in the spring.

Now, it appears that Dollar General investors will get the sum they hoped for nearly two years ago.

Douglas A. McIntyre


Filed under: 24/7 Wall St. Wire, Mergers and Buy Outs Tagged: CAR, DTG, HTZ
Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners