DETROIT (Bloomberg) -- Dollar Thrifty Automotive Group Inc., the fourth-largest U.S. car-rental company, said it will cooperate with Hertz Global Holdings Inc.’s efforts to get regulatory approval for its $2.08 billion purchase offer.
The timing of regulatory approval for a deal with Hertz or Avis Budget Group Inc., which has also offered to buy the company, can’t be assured, Tulsa, Okla.-based Dollar Thrifty said Thursday in a statement.
Hertz, the largest publicly traded rental-car company, on May 9 offered to buy Dollar Thrifty for cash and stock in an effort to top a bid by Parsippany, N.J.-based Avis. Park Ridge, N.J.-based Hertz’s offer was valued at $72 a share the day it was made, 24 percent more than Avis’s proposal in September.
Avis and Dollar Thrifty have awaited U.S. Federal Trade Commission approval for their deal since September, when Dollar Thrifty shareholders rejected a $1.44 billion offer from Hertz.
The winner between Hertz and Avis gets a company that is more profitable than either acquirer and would become the second- largest U.S. car-rental company, behind Enterprise Rent-A-Car Co.
John Barrows, a spokesman for Avis, didn’t immediately return telephone and e-mail messages left after normal business hours on Thursday.
Hertz’s offer, which isn’t subject to financing conditions, consists of $57.60 in cash and 0.8546 Hertz shares, or about $71.93 a share based on Thursday’s closing prices. Hertz said it has held discussions with the FTC and has begun selling its Advantage brand to facilitate approval.
"Obtaining antitrust clearance is our top priority," Hertz CEO Mark Frissora said today in a statement. "We are committed to offering deal certainty to the Dollar Thrifty shareholders."
Hertz already owned about 1.6 percent of Dollar Thrifty’s outstanding shares as of April 29, according to a May 9 filing.
Avis offered $45.79 in cash and 0.6543 of its shares for Dollar Thrifty and, in early October, agreed to delay an exchange offer while the two began working toward regulatory approval. Avis also offered a $20 million breakup fee that Dollar Thrifty had requested.