Avis Budget ruffles Hertz’s feathers over Dollar Thrifty bid

Avis Budget ruffles Hertz’s feathers over Dollar Thrifty bid

US-based car rental giant Avis Budget has upped the ante in the takeover bid for Dollar Thrifty by stating it is interested in making a “substantially higher offer” than the US$1.2billion offer made by its smaller rival Hertz.Avis Budget Chairman and Chief Executive Ronald Nelson has said he is surprised Dollar Thrifty accepted the Hertz offer when it knew Avis Budget was prepared to spend more, according to reports in the Financial Times.In a letter to Dollar Thrifty’s Chairman and Chief Executive, said: It is hard to understand how your failure to engage in discussions with an interested strategic buyer, who you know also would be able to achieve significant synergies as a result of a combination, can be consistent with the fiduciary duties that you and your board carry to seek the best possible deal for your shareholders.”Hertz has said the acquisition of Dollar Thrifty would strengthen its position against rivals such as Avis Budget.If the merger went ahead, it would give Hertz 9,800 worldwide locations and boost its market share from 19% to 24%.

Gary Marshall
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Gary Marshall
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