Dollar Thrifty Automotive Group Inc. (DTG), the target of 18 months of bidding, has ended its sale process saying Hertz Global Holdings Inc. (HTZ)’s didn’t meet the board’s requirements of an offer cleared of antitrust risk.
“Having received no acceptable offer after conducting an unprecedentedly open process with clearly articulated requirements, it is time for us to move forward on a stand-alone basis,” Dollar Thrifty Chief Executive Officer Scott Thompson said in a statement.
Hertz has been seeking U.S. Federal Trade Commission approval to buy Tulsa, Oklahoma-based Dollar Thrifty, the fourth-largest U.S. rental-car chain. Park Ridge, New Jersey- based Hertz is trying to divest its Advantage brand to help smooth that approval.
Hertz, the second-largest U.S. car-rental company, was Dollar Thrifty’s lone suitor after Avis Budget Group Inc. (CAR) dropped its pursuit Sept. 14. Dollar Thrifty told Hertz and Parsippany, New Jersey-based Avis in letters dated Sept. 6 it wanted final bids submitted by 5 p.m. New York time yesterday. Hertz didn’t refile its bid.
Hertz wants to buy Dollar Thrifty to keep its position behind Enterprise Holdings Inc. The four biggest car-rental chains make up 83 percent of the U.S. market, according to a September report from IBISWorld, the Santa Monica, California- based industry researcher.
Closely held Enterprise had a 40 percent share, followed by Hertz with 20 percent and Avis with 17 percent. Dollar Thrifty accounted for 5.7 percent of the industry’s sales, IBISWorld said.
Rejected Once
Dollar Thrifty shareholders rejected Hertz’s offer in September 2010. Hertz, after calling that bid “final,” renewed its pursuit in May with an offer valued at $1.92 billion as of yesterday’s close. Dollar Thrifty recommended on June 6 that investors not accept Hertz’s bid because it undervalued the company.
“Hertz remains interested in acquiring Dollar Thrifty and continues to pursue an FTC consent decree,” Rich Broome, a spokesman, said yesterday in an e-mail. He declined to immediately comment today.
To contact the reporter on this story: Mark Clothier in Southfield, Michigan at mclothier@bloomberg.net
To contact the editor responsible for this story: Jamie Butters at jbutters@bloomberg.net
