UPDATE 1-Hertz gets FTC "second request" on Dollar Thrifty deal

BANGALORE, June 16 (BestGrowthStock) – Hertz Global Holdings Inc
(HTZ.N: ) said U.S. regulators sought more information on its
potential acquisition of rival Dollar Thrifty Automotive Group
Inc (DTG.N: ).

The company received a “second request” letter from the
Federal Trade Commission on Monday afternoon, a Hertz spokesman
said.

“With the commission’s lawyers, we are working out the
timetable for delivering additional information,” Hertz said in
an email on Wednesday.

Dollar Thrifty is being wooed by both Avis Budget (CAR.N: )
and Hertz Global, the No. 2 and No. 3 car rental firms
respectively, with Avis looking to defend its market share and
Hertz aiming to displace Avis. [ID:nSGE6420H6]

The FTC sought additional information from Avis Budget as
well, Avis Budget said on Tuesday. [ID:nSGE65E0FN]

Avis Budget is yet to make a bid for Dollar Thrifty. The
company in May had said it was interested in making a
“substantially higher” offer.

ANTITRUST SCRUTINY

Analysts had raised concerns that both the deal attempts
could draw lot of scrutiny from antitrust authorities as the
consolidation in the rental car business has been rapid.
[ID:nSGE63T0J6]

The car rental market in the United States is dominated by
privately held Enterprise, which has a market share of 31
percent.

A Dollar Thrifty buyout can lead to a scenario where just
three companies — Enterprise, Avis and Hertz — sharing the
market among themselves.

According to its merger agreement with Dollar Thrifty,
Hertz agreed to divest its Advantage brand and up to $175
million worth of revenue-generating business lines or locations
to get antitrust clearance.

Hertz bought Advantage, with annual revenue of $146
million, out of bankruptcy in 2009.

Avis, if it buys Dollar Thrifty, would have four brands,
and the biggest share in the budget rental market.

Shares of Hertz were down 3 percent at $10.50 in morning
trade on the New York Stock Exchange. Avis Budget shares were
trading down 3 percent at $11.56.

Stock Report

(Reporting by Bijoy Koyitty in Bangalore; Editing by Don
Sebastian)

UPDATE 1-Hertz gets FTC “second request” on Dollar Thrifty deal