Hertz buying Dollar Thrifty for about $2.3 billion
NEW YORK (AP) - Rental car company Hertz is buying its rival Dollar Thrifty Automotive Group Inc. for approximately $2.3 billion.
Dollar Thrifty's stock jumped more than 5 percent in premarket trading Monday.
Hertz Global Holdings Inc. said late Sunday that it will pay $87.50 for each Dollar Thrifty share. That's an 8 percent premium to the company's Friday closing price of $81 per share.
On Thursday media reports said Hertz of Park Ridge, N.J., was considering a new bid for Dollar Thrifty, a Tulsa, Oklahoma-based company it had pursued for two years.
Hertz is also selling its Advantage business to rental car company Franchise Services of North America and Macquarie Capital. The Advantage closing is conditioned upon Hertz completing the Dollar Thrifty buyout.
Both Hertz and Dollar Thrifty's boards have unanimously approved the deal, which still needs antitrust clearance from the Federal Trade Commission.