Dollar Thrifty opted not to contact Avis – filing

* Dollar Thrifty board considered contacting Avis – filing

* Board was concerned about transaction risk, antitrust

* Board felt Hertz deal did not preclude Avis bid

NEW YORK, May 26 (BestGrowthStock) – Car rental company Dollar
Thrifty Group (DTG.N: ) decided against contacting rival Avis
Budget Group (CAR.N: ) before it agreed to sell itself to Hertz
Global Holdings Inc (HTZ.N: ) for several reasons, including
concerns about Avis’ ability to close a deal, according to a
filing with U.S. regulators.

Dollar Thrifty held merger talks with both Avis and Hertz
in 2007 and 2008 but did not contact Avis as it approached its
nearly $1 billion sale to Hertz, according to a registration
statement filed with the U.S. Securities and Exchange
Commission on Wednesday.

Avis has criticized Dollar Thrifty for not engaging it in
discussions while it negotiated with Hertz, and has said it
would like to trump the Hertz bid. Avis has since signed a
confidentiality agreement with Dollar Thrifty and started due
diligence on a possible offer.

In late January and in March, the Dollar Thrifty board
considered contacting Avis to seek out a competing bid,
according to the registration statement, which was prepared by
Dollar Thirfty and filed by Hertz.

The board decided not to contact Avis because, among other
reasons, “Avis would likely require substantial financing
and/or the approval of its shareholders in order to effect a
transaction with DTG at a price competitive with the Hertz
proposal, and such contingencies would present undesirable
transaction risk for DTG and its shareholders,” the filing

The board also highlighted antitrust concerns over an Avis
deal and, according to the filing, it felt the terms of the
Hertz deal would not preclude Avis from making a proposal after
the signing of the agreement.

Avis has said the chief executives of the two companies
agreed to meet for dinner on April 28 to discuss a possible

According to the filing, the two did indeed agree to meet
for dinner, but Dollar Thrifty CEO Scott Thompson did not know
the purpose of the invitation and believed it was of a
“personal nature.”

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(Reporting by Michael Erman; editing by John Wallace)

Dollar Thrifty opted not to contact Avis – filing