Dollar Thrifty Automotive Group Inc. (DTG) shares spiked 14 percent to $79.15 in late-morning trading Monday, the most intraday since December 1997, after the Hertz Global Holdings Inc. (HTZ), the largest publicly traded rental-car company, offered to buy Dollar Thrifty for $2.08 billion, or $72 a share, 24% more than Avis Budget Group Inc’s (CAR) offer. This includes $57.60 in cash and 0.8546 shares of its common stock. Hertz’s latest bid is at a 3% premium to DTG’s $69.69 closing price on Friday and is almost double what it offered in April last year – a bid that was later rejected by Dollar Thrifty investors.
Dollar Thrifty issued the following statement in response to the announcement by Hertz Global Holdings, Inc:
“Dollar Thrifty’s Board of Directors will review and consider Hertz’s offer and related statements in accordance with its fiduciary duties to shareholders, and will have no further comment on this matter at this time. Dollar Thrifty shareholders are advised to take no action pending the Board’s review.”
J.P.Morgan (JPM) and Goldman Sachs (GS) are acting as financial advisers to Dollar Thrifty and Cleary Gottlieb Steen & Hamilton LLP is acting as Dollar Thrifty’s legal counsel.
During Monday’s trading session, DTG shares have gained 12.93% to $78.70. HTZ is down 20 cents, or 1.19%, to $16.65.