Hertz said to be near $2.56 billion cash deal for Dollar Thrifty
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DETROIT/NEW YORK (Bloomberg) -- Hertz Global Holdings Inc. is near a deal to acquire Dollar Thrifty Automotive Group Inc. and an agreement may be announced early next week, three people familiar with the negotiations said.
The all-cash offer is for $87.50 a share, said one of the people, who asked not to be identified because the discussions are private.
The new offer is worth about $2.56 billion, based on the 29.24 million shares including options and compensation-related stock listed in its quarterly regulatory filing. The proposal is being presented to both boards this weekend, said another one.
The deal, which could still fall apart like those that have preceded it, provides an 8 percent premium over Dollar Thrifty's closing price Friday of $81. Hertz has tried for more than two years to acquire Dollar Thrifty, the last available publicly held rental-car company.
Dollar Thrifty shareholders rejected Hertz's 2010 bid of about $1.2 billion. It made another offer last year that it later withdrew, citing market conditions. Some of the figures may have changed since the Aug. 2 regulatory filing that could affect Hertz' exact cost of the acquisition, said one the people.
Anna Bootenhoff, a spokeswoman for Dollar Thrifty, and Richard Broome, a spokesman for Hertz, declined to comment on the matter.
Investors contacted
Hertz began contacting some Dollar Thrifty investors in recent weeks to determine at what price they would sell, said three people familiar with the matter. Hertz also asked investors whether a hostile bid should be pursued, said one of the people.
Hertz, which reaffirmed last month it wanted to buy Dollar Thrifty, has been trying to sell its Advantage unit to satisfy U.S. antitrust concerns. The Federal Trade Commission won't issue a consent decree until the companies have agreed to terms, a person familiar with the process said.
Dollar Thrifty contacted Avis Budget Group Inc. last month to solicit a new offer, a person with knowledge of the matter said at the time. Avis ended its previous pursuit of Dollar Thrifty in September 2011, perceiving it as too expensive, and decided against making another attempt this year.
Avis made its initial bid in July 2010 before sweetening it to about $1.52 billion two months later. Dollar Thrifty shares traded below $1 in March 2009; this year they gained 15 percent through Friday.
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