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Ownership of Dollar/Thrifty Automotive Group (DTAG)

In 2008 DTAG share price reached a low of 68 cents and the company was reorganised.

In 2009 Hertz approached DTAG to discuss the possibility of purchasing DTAG. Under US law such serious approaches have to be considered and put to the shareholders. Terms were agreed and due diligence performed by both parties. A formal offer worth $50.78 was then made by Hertz. Despite a higher $1.52 billion, $53.08-a-share offer from Avis Budget, the Dollar Thrifty board said its members aren't sure Avis could complete the merger in a timely fashion or protect shareholders should federal regulators withhold antitrust approval. The DTAG board of directors therefore supported the Hertz bid and arranged for it to be voted on at a shareholders meeting on 30th September. On the 27 Sept Avis asked for this offer to be delayed but the DTAG directors reaffirmed their support for the Hertz proposal.

The Hertz offer was rejected by the DTAG shareholders in the vote on 30th Sept 2010.

This still leaves Avis free to make an offer for the business if they should so wish.

DTAG did not seek a purchaser for their business and are continuing to plan and trade on the basis that they remain independent.

Shares are now trading at about $45/46.

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