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Dollar Thrifty Automotive Group (DTAG) has taken itself off the market

Both Avis & Hertz had been competing but DTAG did not find the proposals acceptable so the solicitation process has been terminated. Dollar Thrifty will instead continue to trade on its own.

Scott L. Thompson, president and chief executive at DTAG, said:

"The purpose of setting a deadline for submission of bids was to bring clarity to the next steps for the company. As we said all along, continuing uncertainty is in no one's interest. While Hertz's May 2011 exchange offer remains outstanding and on 7 October, 2011 Hertzs CEO called me personally to reaffirm their commitment to pursuing the acquisition of Dollar Thrifty, the fact remains that they have not made a proposal that addresses our boards requirements.

Having received no acceptable offer after conducting an unprecedented open process with clearly articulated requirements, it is time for us to move forward on a stand-alone basis. It is also important to emphasise that Dollar Thrifty is well positioned for these uncertain times, as rental car customers become even more value-focused. Our long established value brands combined with our low operating cost and solid balance sheet are serving us well. We are on track for another record year."

DTAG had previously announced that it would start a share repurchase programme on 1 November.

For the third quarter of 2011 DTAG forecast a rental revenue increase of approximately 2% compared to the third quarter of 2010. Corporate adjusted EBITDA (earnings before interest, taxes, impairment loss, depreciation and amortisation), excluding merger-related expenses, was expected to range from $110 to $120m for the quarter, compared to $93.7m.

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Last edited 09 June 2020 cheap-car-rental.com