Dunn Lambert, LLC
We mean business
Comprehensive legal services for businesses in New Jersey and New York call 201-957-0874
Dunn Lambert, LLC
comprehensive legal services for businesses call 201-957-0874

Avis v. Hertz in Dollar Thrifty Acquisition, Part 1

The Park Ridge, New Jersey-based rental car company, Hertz Global Holdings Inc., is waiting to see how much money Avis Budget Group Inc. will bid in a counter-offer in the two companies' long-time battle to acquire Dollar Thrifty Automotive Group. People following the contentious competition say that it is likely the winning deal will come down to cash. If Avis bids significantly more than Hertz, it is likely Dollar will choose Avis, and Hertz will walk away from the dealings.

The resolution of the acquisition triangle rests mostly on the amount of the bid because, despite what they say, it seems both companies would have an equally difficult time getting a merger with Dollar approved by government regulators. Both a merger between Hertz and Dollar and Avis and Dollar would raise significant antitrust issues that government regulators would examine closely before any deal was approved. 

Dollar has been negotiating with both Avis and Hertz for the last three years for a merger with one of the companies, and one of the most challenging points of either deal has been how to win regulatory approval. In order to successfully aquire Dollar, either company would likely have to accept large divestitures and pay a break-up fee.

If Avis ends up winning in their bid to buy out Dollar, Hertz has a back-up plan. They will buy Avis's divested assets and grow their Advantage Rent A Car unit. They will create an expanded leisure-travel brand for themselves whether with an acquisition of Dollar or by growing their budget unit with the purchased divested assets.

 

Related Resources:

No Comments

Leave a comment
Comment Information

Office Location

google plus

Dunn Lambert, LLC
East 80 Route 4 Suite 170
Paramus, NJ 07652

Paramus Law Office Map

Dunn Lambert, LLC
1745 Broadway, 17th Floor
New York, NY 10019
New York Law Office Map
Phone: 201-957-0874
Fax: 201-291-0140
Telephone: 212-768-0700
Fax: 212-519-9804
Best Lawyers | Best Law Firms | U.S.News & world report | 2016

GET ANSWERS from a firm
with a sense of business.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Review US
Subscribe to This Blog's Feed FindLaw Network