Hertz Prepares For Separation Of Its Rental Equipment Business, Shares Spike

Shares of Hertz Global Holdings Inc HTZ were trading at $14.48, up nearly 3 percent after the company filed an SEC Form 10 Registration for the separation of its equipment rental business.

Hertz said that the planned separation of its rental business will be a tax-free transaction to shareholders and is expected to be completed by the end of the second quarter of 2016.

Hertz's president, John Tague, argued that there are "fundamental differences" in the business models of its vehicle rental and equipment rental and the separation of the two segments will "enable more distinct focus" by the separate management teams.

Larry Silber, president and chief executive officer of Hertz Equipment Rental also said, "We are confident that our separation from Hertz Global Holdings will provide us better flexibility and focus to pursue growth opportunities within our core equipment rental markets, which also will enable us to provide better value to our customers, employees, and suppliers."