By comparison, Hertz's biggest rival in this deal, Avis Budget, made an offer which is worth $1.5 billion. Avis' offer comes with no breakup fee however, while the Hertz bid carries a $44.6 million one.
Hertz's announcement comes after several months of battle between the two companies, both going after Dollar with all their guns blazing and increasing their bids just like in an auction house. The stakes are pretty high, with the potential for the one which takes over Avis to become one of the biggest players in the industry.
"We have made our best and final offer, and we believe it is in the best interest of Dollar Thrifty shareholders to vote in favor of the transaction on Sept. 30,” said Hertz CEO Mark P. Frissora.
"We expect to close the transaction by the end of the year. A vote against the deal would be a lost opportunity for the Dollar Thrifty shareholders,” he warns.
The Dollar management and shareholders will meet next week to decide which offer is the best. According to analysts, should Hertz not go for a higher bid, its chances of getting Dollar might not be that great.
"At this point, there is less than a 50 percent chance it will go through," Jake Dollarhide, Longbow Asset Management CEO told Tulsa World.
"Hertz is gambling that shareholders will go with a lower offer. They believe the Dollar Thrifty board and shareholders think they are the superior brand and company."
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