Hertz Global Holdings said it would spin off its equipment rental business, aiming to raise $2.5 billion to repay debt and focus on its car rental business.
Hertz, the No. 2 U.S. car rental company behind privately owned Enterprise Rent-A-Car, has been under pressure from investors to shed the business, which rents equipment ranging from small tools to heavy earth movers.
Hertz shares rose 2 percent before the bell on Tuesday. (Click here for the latest quote.)
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The company put in place a poison pill in December to ward off any takeover attempts at a time when activist investors such as Daniel Loeb's Third Point Capital were picking up stakes in the company.