The Dollar Thrifty Automotive Group has said it would be considering an offer from the Avis Budget Group that was substantially higher than the Hertz bid.
Last week, Hertz announced the takeover bid for Dollar Thrifty that made news worldwide, and was seen as one which would result in the collaborative group becoming the global leader in car rentals. The move has been heralded as a new dawn in the hire industry with customers benefitting from both the discounted brand offerings of Dollar Thrifty and the massive international Hertz network.
Dollar Thrifty, which had received a formal written bid from Avis on May 3rd, said that Avis has misunderstood the Hertz offer and interactions between them and Hertz. They also claimed that Avis had miscalculated fees attached to the Hertz deal.
However, the group did acknowledge that due to responses from shareholders indicating that the Hertz share price offer was considered too low, that they would be open to considering a proposal from Avis, thereby setting up a potential bidding war. Hertz had offered $41-a-share as part of their $1.27 billion takeover package.
Avis executives said that their offer to Dollar Thrifty had to be looked at and even suggested that a joint-deal be considered. Dollar Thrifty has tried to remain neutral throughout the haggling.
Hertz has vowed to move ahead with plans as they were, trying to ignore anti-trust issues associated with a counter bid. Stock prices have in Dollar Thrifty have risen since the Hertz announcement and investors see a counter bid as unlikely to eventuate.