Avis Budget Asks For Information From Dollar Thrifty To Make Counterbid
The top executive of Parsippany, New Jersey-based Avis Budget Group Inc (NYSE: CAR) has called in to discuss its bid with Dollar Thrifty Automotive Group Inc’s (NYSE: DTG) board of directors. CAR’s executives have made the move after DTG signed the takeover deal with Hertz Global Holdings Inc (NYSE: HTZ) for $41 a share.
In a letter to DTG’s board, CAR’s Chairman and CEO, Ronald Nelson, has used terms such as "very surprised" and "astonished" to describe his reaction to the Hertz-Dollar Thrifty deal announced late last month. He 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 associated with an acquisition of Dollar Thrifty by Avis Budget." He stressed that Avis Budget would want to have access to DTG’s information to start conducting a due-diligence review to make a counterbid.
While CAR is down 1.49%, DTG has jumped 14.23% to $50.25.
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