Although Hertz Global Holdings, Inc. made a bid to acquire rental car company Dollar Thrifty Automotive Group for $1.2 billion in stock and cash last month, rival Avis Budget Group appears to be ready to ignite a bidding war for Dollar Thrifty.
Avis chairman and CEO Ronald L. Nelson recently sent a letter to Dollar Thrifty executives saying that Avis could potentially top Hertz’s offer. As of press time, representatives from all three companies had no comment.
The Hertz acquistion of Dollar Thirfty, if approved, would make it the second largest U.S. car rental company. According to Hertz, the combined company would have an overall U.S. market share of 23 percent, trailing Enterprise Rent A Car, which has 53 percent of the market.
Hertz chairman and CEO Mark P. Frissora noted that the acquisition could potentially yield a minimum of $180 million in synergies, allowing both companies to operate at lower costs. The transaction is still subject to regulatory and shareholder approval.