Rental bankers

4 May 2010 By Rolfe Winkler

The two leading Wall Street firms are advising Dollar Thrifty on its $1.3 bln sale to Hertz, which based on all public information looks like a stitchup. A rival willing to pay more says it was never given a chance. The deal looks fishy. Its bankers have some explaining to do.

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On April 26, Hertz Global Holdings agreed to buy smaller rival Dollar Thrifty Automotive Group for about $1.3 billion in a deal that will make it the secondbiggest car rental company.

The cash and stock offer, valued at $41 per share on the day it was announced, represented a 5.5 percent premium to Dollar Thrifty's previous closing share price.

On May 4, rival Avis Budget Group said it was interested in making a "substantially higher" offer than Hertz's $1.3 billion bid to acquire Dollar Thrifty, setting the stage for a potential bidding war.

In a letter to the board of Dollar Thrifty, Avis Budget Chief Executive Ronald Nelson said, "We would like to make a substantially higher offer to acquire Dollar Thrifty, especially in light of your recent performance and the potential synergies."

Context News

On April 26, Hertz Global Holdings agreed to buy smaller rival Dollar Thrifty Automotive Group for about $1.3 billion in a deal that will make it the secondbiggest car rental company.

The cash and stock offer, valued at $41 per share on the day it was announced, represented a 5.5 percent premium to Dollar Thrifty's previous closing share price.

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