Dollar Thrifty Automotive Group on Monday recommended that
shareholders approve Hertz's offer to buy the company, even though Avis Budget
has submitted a higher bid.
Dollar Thrifty said its board of directors reviewed last
week's bid by Avis Budget, and concluded that "Avis Budget has not
demonstrated to our satisfaction that its proposed transaction can be completed
in a timely manner and that it would adequately protect our shareholders in the
event that Avis Budget is unable to obtain the required regulatory approvals."
Last week, Avis Budget submitted an offer that boosts the
cash portion of the deal to $45.79 per share, plus 0.6543 shares of Avis Budget
stock. Analysts say the move values Dollar Thrifty at $53 per share, topping
Hertz's offer of $50.25.
On Friday, Hertz said that it would no longer engage in a
bidding war, stating that its $50.25 offer was its "best and final offer."
Hertz expressed confidence that Dollar Thrifty shareholders
would approve the merger at their scheduled Sept. 30 meeting, clearing the way
for a closing later this year.
Hertz and Dollar Thrifty inked a merger agreement on April
25. On Sept. 10, Dollar Thrifty accepted a higher offer from Hertz in the midst
of a bidding war between Avis Budget and Hertz. Analysts value the Hertz offer
at $1.43 billion.
This report originally
appeared on TravelWeekly.com.