Rosenstein Takes 7% Stake In Hertz Global Holdings Inc.; Urges CEO Hire

Hertz Global Holdings Inc.

got a letter from activist investor Barry Rosenstein Thursday urging it to name the former head of Dollar Thrifty Automotive Group Inc. as its chief executive. Jana Partners, Rosenstein's hedge fund, disclosed a 7 percent stake in Hertz in a filing Thursday that included the letter. Hertz gained nearly 4 percent in afternoon trading, closing Thursday at $21.92 a share. Rosenstein lambasted Hertz management, citing what he called "operational missteps," a botched merger integration and "an inability to forecast and communicate with Wall Street." Former Dollar executive, Scott Thompson is well-experienced with a range of business issues facing Hertz, Rosenstein said. Former CEO Mark Frissora abruptly resigned in September after the company posted a series of disappointing earnings along with accounting mistakes requiring the restatement of three years of prior results. Thompson negotiated the sale of Dollar to Hertz in 2012 and Rosenstein said Hertz "may have reservations about Mr. Thompson" because the deal ultimately favored Dollar "at the expense of Hertz." Thomson's name was floated as CEO by investors unhappy with Frissora in August, according to earlier reports by Bloomberg. Rosenstein said locating a replacement for Frissora had "dragged on for two months" and the company should hire Thomson "immediately."