Hertz has withdrawn its tender offer for Dollar Thrifty but said it remains interested in buying its smaller rival if US anti-trust regulators clear the deal.
Hertz cited Dollar Thrifty’s share buyback plans and current market conditions for withdrawing the exchange offer, and said it would reassess the price and terms of a deal once it gets approval. Its last offer for Dollar Thrifty was worth almost $2 billion.
“Hertz continues to believe that a merger with Dollar Thrifty is in the best interests of both companies,” the company said, adding that it was still in talks with the US Federal Trade Commission to win approval for a deal.
“Once anti-trust clearance has been obtained, Hertz will reassess the appropriate price and other terms of the proposed transaction based on Dollar Thrifty’s share repurchase program, Dollar Thrifty’s performance, Dollar Thrifty’s outlook and prevailing market conditions at that time.”
Hertz and Avis Budget have been battling for months over Dollar Thrifty in a rapidly consolidating sector.
Dollar Thrifty halted the sale process earlier this month, announcing a $400 million share buyback programme, after failing to get final acquisition proposals. Avis Budget dropped out, citing volatile debt markets and the $1 billion acquisition of its European arm.