Hertz Again Extends Dollar Thrifty Tender Offer

Hertz Global Holdings Inc. (HTZ) extended its offer for Dollar Thrifty Automotive Group Inc. (DTG) for a third time and said fewer shares have been tendered to its offer.

The No. 2 domestic car-rental company by fleet size said about 8.9 million Dollar Thrifty shares were tendered as of the close of business on Friday. Previously, Hertz had said about 9.02 million Dollar Thrifty shares had been tendered as of Oct. 19, a few days before the previous deadline.

The tender offer is now set to expire on Nov. 16, from its previous deadline of Nov. 5.

Though the percentage of shares tendered by Dollar Thrifty shareholders appears low at about 32%, investors are likely waiting for the companies to obtain approval of the Federal Trade Commission.

Hertz agreed to a $2.3 billion deal for Dollar Thrifty in August, ending a long bidding war with Avis Budget Group Inc. (CAR).

Hertz had agreed last month to give the FTC more time to review its bid for Dollar Thrifty. Hertz, which had previously expected to secure an FTC consent decree by mid-October, said it now won't close the deal prior to Nov. 16 without the consent of the FTC, after previously agreeing to an Oct. 31 deadline.

On Monday, Hertz noted that the tender offer is now scheduled to expire on the same date as its extended timing agreement with the FTC.

Last week, Dollar Thrifty said its third-quarter earnings fell 17% due to merger expenses related to its pending acquisition by Hertz and lower gains from sales of vehicles. Also last week, Hertz reported that third-quarter profit grew 18% as car and equipment rental sales each climbed higher.

Shares of Hertz closed Friday at $13.10, while those of Dollar Thrifty closed at $74.70.

Write to Saabira Chaudhuri at [e-mail]

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