Dollar Thrifty Rejects Avis' Offer

Despite having a slightly better offer when it comes to the money offered, Avis Budget Group was given a big thumbs down by the Dollar Thrifty Automotive Group, who chose to go with the first bidder for its operation, Hertz. The decision has been made with the uncertainty that Avis could live up to its promises in mind, says Dollar.

Antitrust issues raised by rival Hertz, along with the fact that Avis did not offer any break-up fees (for comparison, Hertz offered $44.6 million as a break-up fee) also led to the Dollar's decision.

"Avis Budget has not demonstrated to our satisfaction that its proposed transaction can be completed in a timely manner and that it would adequately protect our shareholders in the event that Avis Budget is unable to obtain the required regulatory approvals," Dollar Thrifty said in a statement cited by Autonews.

But if you think the Dollar saga is over, think again. Avis is not backing down and came up with a new proposal yesterday, asking at the same time that the shareholder vote on a Hertz-Dollar Thrifty be delayed by December 30th.

“The best way to assure that the highest value is provided to Dollar Thrifty shareholders is to hold the shareholder vote on December 30 and let the FTC complete its review and render its findings,” an Avis statement reads, planting the seed for some more scandal.

“If Hertz is confident that its antitrust posture is so much better than ours, we do not see why Hertz would have any objection to delaying the shareholder vote.”