Dollar Thrifty Tells Shareholders Not to Tender Shares

Dollar Thrifty Automotive Group (NYSE: DTG) said its board of directors has unanimously recommended that stockholders not tender into the cash-and-stock offer made by Hertz Global Holdings (NYSE: HTZ) for a $2.25 billion buyout.

Hertz has been competing with Avis Budget Group (NASDAQ: CAR) to acquire Dollar Thrifty, which has agreed to cooperate with both suitors in their respective efforts to obtain antitrust clearance for a deal.

"Given the uncertainty surrounding the length and outcome of the regulatory process as Hertz and Avis Budget work toward antitrust clearance," Dollar Thrifty CEO Scott L. Thompson said in a statement, "the board is recommending that Dollar Thrifty shareholders take no action with respect to the Hertz exchange offer at this time."

Last month, Hertz made an offer for Dollar Thrifty that was valued at $70.68 a share, as of Friday's close. Dollar Thrifty's shareholders spurned a $50 to $51 buyout bid last year. Avis' latest offer was valued at $56.74.

Dollar Thrifty shares were down about 0.8% in morning trading. Hertz and Avis were nearly 2% lower.