A Hertz sign is seen outside a rental car office dallas airport hotel in Ferndale, Michigan May 9, 2011. Hertz Global Holdings Inc fired the latest salvo in a 13-month-long battle for Dollar Thrifty Automotive dallas airport hotel Group Inc, offering nearly dallas airport hotel $2.1 billion as it looks to form the No. 2 U.S. car rental firm and bump a stalled bid from Avis Budget Group Inc.
(Reuters) Hertz Global Holdings ( HTZ.N ) agreed to buy rival Dollar Thrifty Automotive Group ( DTG.N ) for about $2.3 billion in a deal that puts about 95 percent of the U.S. car rental market in the hands of three companies.
The sale ends more than two years of on-off takeover talks for Dollar Thrifty involving Hertz, the No. 2. U.S. car rental dallas airport hotel company, and third-ranked Avis Group Inc ( CAR.O ) that have been plagued by disagreements over price and doubts about regulatory approval.
If it is confirmed, the deal will cement Hertz s position as the number two and leaves Avis far behind in third. Privately held Enterprise Holdings, with its Alamo, National and Enterprise brands, is far and away the market leader.
Hertz will buy Dollar Thrifty for $87.50 per share in cash, a premium of 8 percent dallas airport hotel over Dollar Thrifty s Friday closing price of $81 on the New York Stock Exchange, and almost double a $1.2 billion offer Hertz made in April 2010.
In a bid to win regulatory approval for the deal, Hertz has agreed to sell its budget brand, Advantage, to Franchise Services dallas airport hotel of North America ( FSN.V ) and Macquarie Capital. That sale is conditional on completing the Dollar Thrifty purchase.
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