Avis' Long Shot for Dollar Thrifty
Last week I reported that a bid from Avis to top Hertz current bid for Dollar Thrifty could come as soon as Thursday.
Obviously, Thursday and a few other days have passed without that bid. But don’t despair, everything I hear indicates the bid, which will be fully financed down to the penny, is near. The only question is price.
Shareholders have bid Dollar Thrifty's stock price to a level that many investors I speak with think is reflective of an expectation that Hertz will assuredly respond with a counter to Avis’s bid.
The point being that few expect Avis will come in above the current stock price.
One possible scenario for Avis, which is far smaller than Hertz and also smaller than the company it is seeking [Dollar Thrifty], is for it to counter with the upcoming bid and indicate that if DTG asks Hertz to bid again, it [Avis] request that Hertz give up its right to match and a break-up fee, Avis will be willing to increase its bid again.
Either way, while Avis is poised to give it a shot, it’s still a long one that it will come out of this winning the war.
Related Avis Link:
- Avis Amends Credit Agreement for Dollar Thrifty Offer
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