Hertz upped its offer to acquire Dollar Thrifty Automotive
Group, which postponed the vote for shareholder approval until the end of the
month, the two companies announced late Sunday.
Hertz now is offering about $1.56 billion, or $50 per share,
for the Dollar and Thrifty midtier car rental brands, outbidding Avis Budget Group's counteroffer of $1.36 billion, or $46.50 per share. Hertz's previous offer, announced in April, was about $1.2 billion, or $41 per share.
"We are pleased to reach an agreement that reflects the
significant improvement in Dollar Thrifty's operating performance since the
initial merger agreement was executed on April 25," Hertz chairman and CEO
Mark Frissora and Dollar Thrifty board chairman Thomas Capo said in a joint
statement.
With the increase, Hertz's cash portion of its offer stands
at $43.60 per share. Avis Budget earlier this month sweetened the cash portion
of its offer to $40.75 per share.
Hertz also postponed the shareholder vote on the deal,
originally scheduled for Thursday, to Sept. 30.
Additionally, Hertz announced that it has begun divesting
Advantage Rent A Car, which it acquired in 2009. "It is clear to us that
brand divestiture will be required to complete a transaction involving Dollar
Thrifty that satisfies regulators' concerns," according to Frissora.