By Associated Press
new York City, NY – Hertz agrees to buy rival Dollar Thrifty for $1.2B
NEW YORK (AP) Hertz Global Holdings Inc., the world's largest car rental company, says it will buy rival Dollar Thrifty Automotive Group for about $1.17 billion in cash and stock.
Hertz says the deal will give it an additional 1,550 additional locations, boosting its total to 9,800. It says it will boost its leisure rental business in Europe and elsewhere.
Hertz says its bid values Tulsa, Okla.'s Dollar Thrifty at $41 per share, a 5.5 percent premium to Friday's closing price of $38.85.
The offer is made up of 80 percent cash and 20 percent Hertz stock.
Hertz, based in Park Ridge, N.J., expects the deal to start adding to profits immediately.
Hertz separately is reporting a smaller first-quarter loss.
Copyright 2010 The Associated Press.