Hertz in new $1.4 billion deal for Dollar: report

Sun Sep 12, 2010 7:46pm EDT
 
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NEW YORK (Reuters) - Car rental company Hertz Global Holdings Inc raised its bid for Dollar Thrifty Automotive Group Inc to $1.43 billion, outdoing a rival offer from Avis Budget Group Inc, the Wall Street Journal reported on its website on Sunday.

Hertz raised its bid for Dollar to $50 per share, including a $10.80 per share increase in the cash component of the offer, and the two sides amended their merger agreement, the Journal reported, citing unnamed sources.

Hertz had earlier agreed to buy Dollar Thrifty for $1.1 billion.

The move comes after earlier this month Avis raised its rival bid for Dollar Thrifty to $1.36 billion.

But Dollar Thrifty had raised concerns that the Avis bid may run afoul of antitrust regulations. Avis has also refused to include a fee if it cannot complete its proposed merger.

Last week, a Delaware court cleared Dollar Thrifty to put its deal with Hertz to a vote by shareholders.

After the new purchase price, the vote on the Hertz deal has been postponed to September 30 from September 16, the Journal reported.

Hertz and Dollar Thrifty were not immediately available for comment.

(Editing by Marguerita Choy)