No Buyers for Dollar Thrifty, May Not be Sold

October 12 00:00 2011

New York, October 12 ( –  America’s fourth largest car rental company Dollar Thrifty cannot find any suitable buyers that can take it over. When the company started its bidding procedure 18 months ago, it was shocked to receive takeover bids from only two companies, Hertz and Avis.

Meanwhile Hertz had shown an intention to take over the company. There has even been a series of bidding with Hertz labeling the last one as final. The last bid was made for $1.92 billion, however Dollar Thrift said that this was undervaluing the company.  But, the major reason for the deal did not go through is Anti-trust clearance.

Meanwhile Avis had dropped out of the bidding process in September.  This leaves Dollar Thrift with no choices as it is out of potential buyers. Thus the management has decided to continue its own operations as it has initiated a mega buyback program. The company will continue buying back shares for the next four quarters.

However, investors are wary that Dollar Thrifty may be buying back shares while Hertz is still working towards anti-trust clearance.