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War over Dollar Thrifty continues as Avis ups outstanding offer

By , - Last modified: March 2, 2011 at 2:50 PM

Avis Budget Group Inc., in Parsippany, fired another shot at Hertz Global Holdings Inc. in the rental car companies’ ongoing battle to acquire Dollar Thrifty Automotive Group, with the Parsippany company revising its bid to $45.79 per share, cash, and 0.6543 shares of stock.

The revised bid increases the cash portion of Avis’ offer from the previous $40.75 per share, and follows Park Ridge-based Hertz’s offer of $50 per share, of which $43.60 would be cash, which was accepted by Dollar on Sept. 13.

“We continue to believe in the merits of an Avis Budget–Dollar Thrifty transaction,” read a statement from the company, released Thursday. The revised offer “represents a meaningful premium over the revised offer from Hertz. … We believe that the increased value is warranted, based on improving fundamentals in the industry and at Dollar Thrifty, in particular.”

Hertz spokesman Richard Broome had little to say about Avis' announcement.

"Unlike Avis, Hertz and Dollar Thrifty have an agreement that’s ready for shareholder approval," Broome said.

On Wednesday afternoon, a group of Dollar franchise operators and a real estate owner had been scheduled to file suit over the Hertz bid, arguing it would eliminate competition and drive up prices for consumers.

E-mail Joe Arney at jarney@njbiz.com

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