As we already reported, Avis is ready to outbid Hertz's $41 per share offer, saying Dollar sold itself cheap.
"We would like to make a substantially higher offer to acquire Dollar Thrifty, especially in light of your recent performance," Avis CEO Ronald Nelson wrote in a letter to Dollar Thrifty.
"It is hard to understand how your failure to engage in discussions with an interested strategic buyer, who you know also would be able to achieve significant synergies as a result of a combination, can be consistent with the fiduciary duties that you and your board carry to seek the best possible deal for your shareholders."
According to Bloomberg, Avis now has a choice between trying a hostile takeover bid or accept a standstill agreement. According to sources close to the matter, the discussions between Avis and Dollar are advancing in a friendly manner.
As said, Hertz was ready to offer $41 per share, or $1.2 billion for Dollar, 80 percent of it in cash. At the time it was made and largely agreed with, the offer made by Hertz displeased the third largest bidder for Dollar Thrifty, Citadel Investment, which calls the deal a "complete steal."
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