Earlier this year, Hertz had agreed to buy Dollar Thrifty Automotive Group Inc. for about $1.2 billion in cash and stock – then rival Avis came along and said that they”ll beat Hertz”s offer and put out an offer of $1.35 billion to the executives at Dollar Thrifty.
Well, Dollar Thrifty has rejected the bid from Avis Budget Group and said it has already agreed to Hertz because of uncertainty about Avis’ ability to close the deal.
At the end of trading on Tuesday, Avis’ bid was about 18 percent higher than Hertz’s. Dollar Thrifty, in a letter to Avis Chairman Ronald Nelson, said it was problematic that Avis was unwilling to provide a reverse termination fee in its offer.
– By: Omar Rana
Source: Automotive News (Subscription Required)