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Hertz Global Holdings Inc. Buries Hatchet With Icahn

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Hertz Global Holdings Inc. (NYSE: HTZ) averted a proxy contest with Carl C. Icahn for control of its board by agreeing in principle to name three directors approved by the activist investor.

Two of the new directors will be part of the five-person search committee leading the process to find a permanent chief executive, Hertz said Thursday. The board is composed of nine members.

Shares of the Naples, Florida-based company gained nearly 4 percent in recent after-hours trading, changing hands at $28.80 a share.

"The right new CEO will return it to its former glory," Icahn said in a statement.

Icahn disclosed an 8.5 percent stake in Hertz Aug. 20 and said he'd seek discussions with its management and board relating accounting issues, operational failures and Icahn's "lack of confidence in management."

Around the same time, 3 percent stakeholder Fir Tree Partners urged the replacement of Chief Executive Mark Frissora, who stepped down Monday. Brian P. MacDonald was named interim CEO.

Chairwoman Linda Fayne Levinson called Thursday's deal with Icahn in the best interests of the company and its shareholders.

"It eliminates distractions," according to Levinson, who said the company will "take the necessary actions to fix the business."

Hertz said in March it will spin off its equipment-leasing division to focus on car rentals. Hertz hasn't reported financial results from the first or second quarters and has warned investors not to rely on its past three years of its financial statements.

Posted-In: Carl Icahn Fir Tree Partners Linda Fayne LevinsonNews Management After-Hours Center

 

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