Share “Hertz bid ends long courtship, and...”

Hertz bid ends long courtship, and successful run for Dollar Thrifty

Hertz will pay $2.6 billion in cash for Tulsa-based Dollar Thrifty Automotive Group, but the status of local jobs remains unclear.
by Don Mecoy Published: August 27, 2012
Advertisement
/articleid/3704798/1/pictures/1810816">Photo -  In this May 9, 2011 file photo, customers wait in line at a Dollar rental car counter at San Jose International Airport in San Jose, Calif. More than two years after its original bid, Hertz agreed Sunday to buy Dollar Thrifty Automotive Group Inc. for about $2.3 billion, giving it more ways to attract travelers and expand its international presence. It will also give the company a leg up against competition from an increasing number of smaller competitors. AP PHOTO <strong>Paul Sakuma - AP</strong>
In this May 9, 2011 file photo, customers wait in line at a Dollar rental car counter at San Jose International Airport in San Jose, Calif. More than two years after its original bid, Hertz agreed Sunday to buy Dollar Thrifty Automotive Group Inc. for about $2.3 billion, giving it more ways to attract travelers and expand its international presence. It will also give the company a leg up against competition from an increasing number of smaller competitors. AP PHOTO Paul Sakuma - AP

Thompson said it's not clear what Hertz would do with the Tulsa operations.

“We have no information on Hertz's plans for the Tulsa operations, but my guess is that Hertz will benchmark the cost of functions in Tulsa against its Oklahoma City operations in determining where functions are located over the long term,” Thompson wrote.

“We have been assured by Hertz that all of our people will be considered for positions. Our agreement with Hertz includes protection of your current compensation and benefits for a period of time, including severance for those who are not retained. I am sure that Hertz will want the best people in this very competitive industry.”

The deal is expected to close by year's end, Hertz CEO Mark Frissora said Monday.

Frissora said the acquisition should create about $160 million in annual savings and provide opportunities for increased sales.

Both Hertz and Dollar Thrifty's boards have approved the deal, which still needs antitrust clearance from the Federal Trade Commission. Hertz said it has stayed in close contact with the FTC to secure clearance and that Dollar Thrifty will fully cooperate with the process.

Frissora is confident the two companies will be able to get the deal “swiftly approved” by regulators. He said the deal is more of a certainty this time because of the massive preparation Hertz undertook before the deal was announced.

CONTRIBUTING: The Associated Press

by Don Mecoy
Business Editor
Business Editor Don Mecoy has covered business news for more than a decade after earlier working on The Oklahoman's city, state and metro news desks, including a stint as city editor. He has won state and regional journalism awards for business,...
+ show more


AROUND THE WEB

  1. 1
    Amazon Is Developing a Galaxy Quest TV Show
  2. 2
    'Les Miserables' actor Kyle Jean-Baptiste dies after fall - CNN.com
  3. 3
    VICE: It's Time to Accept Video Games As Art
  4. 4
    What if your boss paid you to have life experiences for 3 months?
  5. 5
    Study: Sometimes the 'irrational' choice is the best one
+ show more

FEATURED JOBS



× Trending business Article