Hertz deal for Dollar Thrifty delayed for FTC review
BY Staff and Wire reports
Friday, October 19, 2012
10/19/12 at 5:19 AM
Read additional stories about Dollar Thrifty Automotive Group. Original Print Headline: FTC slowing Hertz deal for Dollar Thrifty
Hertz Global Holdings Inc. said on Thursday that it won't close the deal to buy rival rental car company Dollar Thrifty Automotive Group before Nov. 16.
Previously the company said it wouldn't close the acquisition before Oct. 31, but the term was extended because the Federal Trade Commission requested more time to review the deal, Hertz said in a statement. Hertz said both companies will work with the FTC to address issues raised by the regulatory agency.
The deal could close sooner if the FTC agrees. "There can be no assurance as to what actions the FTC may take in connection with the proposed acquisition," Hertz's statement said.
Park Ridge, N.J.-based Hertz is in the process of acquiring Tulsa-based Dollar Thrifty for $87.50 per share, or about $2.3 billion.
Hertz agreed to the Dollar Thrifty deal in August, more than two years after its original bid was rejected by shareholders.
Meanwhile, The New York Post reported that the FTC vote on the merger likely will be close. The Post cited an unnamed source familiar with the matter as predicting the decision will be "too close to call."
A Bloomberg News report on the Post story said that Howard Shelanski, the FTC's Bureau of Economics chief, is securitizing the proposed merger. His officials have met with both companies, the report said.
Another Post source predicted a 3-2 vote in favor of the deal.
Hertz is selling its Advantage brand to help clear the way for the combination with Dollar Thrifty.
Dollar Thrifty, the nation's fourth largest rental car operator, employs 780 people in Tulsa and 5,900 companywide.
Hertz fell 0.5 percent to $14.73 at the close of trading in New York. Dollar Thrifty's shares declined 2 percent to $85.11.