PARK RIDGE, N.J. -
After both Hertz and Avis Budget Group learned that Dollar Thrifty Automotive Group shareholders voted against the Hertz merger, both reacted by speaking out.
Hertz confirmed its earlier statement that it will no longer seek to acquire DTAG.
“Subject to final confirmation of the results of the stockholder meeting, we will focus on implementing our strategy to rapidly accelerate the expansion of Advantage Rent-A-Car and the U.S. off-airport business,” said Mark Frissora, Hertz chairman and chief executive officer.
“This strategy builds on several straight quarters of faster revenue growth in the U.S. airport rental market, compared with our publicly traded competitors. Additionally, we started taking the necessary steps to cease activities related to the acquisition of Dollar Thrifty, as previously announced,” he highlighted.
As for Avis Budget Group, a statement released by the company said, “Dollar Thrifty stockholders’ rejection of the proposed merger with Hertz Global Holdings Inc. represents a key milestone in Avis Budget’s plan to acquire Dollar Thrifty.
“As previously announced, Avis Budget intends to continue to diligently pursue antitrust clearance and will commence an exchange offer for Dollar Thrifty’s shares at our recent offer price within the next 10 business days. We also stand ready to sign the merger agreement previously provided to Dollar Thrifty, amended to include a $20 million reverse termination fee,” according to the statement.
Avis Budget went on to say it “looks forward to engaging with Dollar Thrifty.”
Citigroup and Morgan Stanley & Co. Inc. are acting as financial advisers to Avis Budget and Kirkland & Ellis LLP and Arnold & Porter LLP are acting as legal counsel.