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Hertz likely to revive Dollar Thrifty bid within weeks

by William McConnell in Washington | Published July 3, 2012 at 10:49 AM

A new offer by Hertz Global Holdings Inc. for Dollar Thrifty Automotive Group Inc. could come within the next few weeks, say sources following Hertz's attempt to gain control of the rival car rental company.

Several factors indicate a new deal between the companies will be unveiled fairly soon. First, Dollar Thrifty officials have begun polling the company's largest shareholders for their thoughts on a fair price, according to several investors in the company. Also, the Federal Trade Commission staff has wrapped up negotiations over the necessary antitrust approvals and is now preparing an order than can be presented to the five commissioners, said another source familiar with the discussions.

The announcement of Hertz's offer for Dollar Thrifty is expected to come soon enough to allow the deal to be consummated, the necessary antitrust divestitures completed and formal approval from the FTC commissioners granted by late September.

The antitrust condition would call for Hertz to divest its Advantage brand to the parent of rental car rival U-Save. Other Hertz or Dollar Thrifty rental locations at specific airports are also expected to be ordered divested.

Hertz has been fighting for two-years to acquire Dollar Thrifty. A $1.45 billion deal in April 2010 was thwarted when Avis Budget Group Inc. countered with its own $1.5 billion offer three months later. After Avis failed to win antitrust approval, Hertz made a new $2 billion bid for Dollar Thrifty in May 2011 but withdrew the offer in October to focus on first winning FTC approval.

Regulators have been worried that by taking over mid-tier brand Dollar Thrifty, the market will lose Advantage as a midpriced competitor. Hertz's flagship brand is geared to business and higher-end vacation travelers.

U-Save is owned by Franchise Services of North America Inc., which also operates the Rent-A-Wreck of Canada brand, some rental fleet insurance operations and other car and truck rental units.

FSNA trades on the Toronto Stock Exchange's TSX Venture Exchange.

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Hertz likely to revive Dollar Thrifty bid within weeks

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