Analysts believe that it is unlikely that another bidder will come to the table with an offer to purchase Dollar Thrifty. Currently, Hertz has put up a $940 million bid for the group, and rivals, Avis are considering putting in a counter offer.
Analyst at Abrams Consulting Group, Neil Abrams, said that he couldn’t see anyone wanting to get involved with Avis and Hertz in a bidding war for the Dollar Thrifty Group. The largest player in the vehicle rental market, Enterprise, which runs the Alamo, National and Enterprise brands and has a 53 per cent control over the car hire market, would face problems with anti-trust regulators, should it decide to step in.
Bond analyst with Gimme Credit, Shelly Lombard, said that there was absolutely no way that the FTC would permit a takeover of Dollar Thrifty by Enterprise. Abrams said that there was the slim possibility of one of the major European players stepping in such as Sixt or Europcar. However he thought that this was unlikely.
Most analysts think that the upper hand is currently with Hertz. To raise enough cash to put in a substantial enough counter-offer for Dollar Thrifty, Avis will probably have to rely on hefty financing as well as the approval of its shareholders.
Dollar Thrifty has already voiced its concerns about Avis having to get shareholder approval and financing as being a potential risk to its own investors. Since saying that it planned to outbid Hertz earlier in the month, shares in Avis have dropped by 27 per cent.
We Search and compare over 40 car hire suppliers to find you the cheapest car hire deal