UPDATE 2-Hertz to buy Dollar Thrifty for $1.2 bln

* Cash-and-stock deal at $41.0 a share

* Hertz sees deal immediately accretive to annual adj EPS

* To fund deal with existing liquidity from combined co

(Recasts; adds details, Hertz outlook)

BANGALORE, April 26 (BestGrowthStock) – U.S. car rental firm Hertz
Global Holdings Inc (HTZ.N: ) had agreed to buy smaller rival
Dollar Thrifty Automotive Group Inc (DTG.N: ) for about $1.2
billion to boost its presence in the leisure rental market.

The deal marks a significant consolidation for the car
rental industry, which is starting to recover from the global
economic downturn helped by a pickup in travel and the used car
market.

The cash-and-stock offer of $41 per share is at a 5.5
percent premium to Dollar Thrifty’s Friday close of $38.85.

It values the company at $1.17 billion based on its shares
outstanding of 28.6 million as on Feb. 24 according to Reuters
data.

The combined company will now have a single publicly listed
U.S. company — Avis Budget (CAR.N: ) — to compete against.

“Dollar Thrifty also has a strong international presence,
complementing our global footprint, which enables us to utilize
a recognized brand to accelerate our leisure rental strategy in
Europe and other markets,” Hertz Chief Executive Mark Frissora
said in a statement.

Dollar Thrifty, whose primary market is the United States,
rents cars under the Dollar Rent A Car and Thrifty Car Rental
brands.

In a separate statement, Hertz raised its adjusted earnings
outlook for 2010 to 43 cents to 45 cents a share from 37 cents
to 39 cents a share, indicating an improvement in business
trends. [ID:nWNAB1658]

Hertz said it expects the deal, which is 80 percent cash and
20 percent stock, to be immediately accretive to its annual
adjusted earnings when completed.

At the closing of the deal, Hertz will issue about 18
million shares of its common stock and pay about $750 million in
cash, excluding the special $200 million Dollar Thrifty
dividend, Hertz said.

Barclays Capital acted as lead financial advisor to Hertz
and Bank of America Merrill Lynch also provided advice.

Hertz shares closed at $12.88 Friday on the New York Stock
Exchange.
(Reporting by Bijoy Koyitty in Bangalore; Editing by Mike
Nesbit and Erica Billingham)

UPDATE 2-Hertz to buy Dollar Thrifty for $1.2 bln