Car hire firm Dollar Thrifty has rejected the latest take over bid by Hertz Global. The company said the Hertz had failed to meet with necessary requirements by a pre determined deadline. Dollar said that Hertz had not managed to protect against possible objections by the antitrust bodies.
Scott Thompson, chief executive of Dollar Thrifty, said that after an 18 month open process, it was time to look at how the firm could move forward as a stand alone company. However, the board has said that it is still prepared to look at another offer from Hertz, or proposals from other potential buyers.
Following the announcement that a deal with Hertz would not be moving forward at the present time, Dollar saw its share value drop on the markets. The rental firm has said that it plans to repurchase shares valued at $400 million from the beginning of next month.
The repurchasing plan will see it buy back $100 million worth of stocks every three months over four quarters. The long running battle to acquire Dollar ended last month after rival Avis decided to invest its energy in buying its European counterpart.
In September 2010, Dollar said it was refusing an offer made by Hertz. Hertz said that the offer was its final one, but in May this year decided to increase the bid to $1.92 billion. Dollar’s board told investors that the figure still undervalued the firm. Dollar is currently the fourth largest vehicle renting chain in the US.
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