UPDATE 1-Hertz gets FTC "second request" on Dollar Thrifty deal
BANGALORE, June 16
BANGALORE, June 16 (Reuters) - Hertz Global Holdings Inc (HTZ.N) said U.S. regulators sought more information on its potential acquisition of rival Dollar Thrifty Automotive Group Inc DTG.N.
The company received a "second request" letter from the Federal Trade Commission on Monday afternoon, a Hertz spokesman said.
"With the commission's lawyers, we are working out the timetable for delivering additional information," Hertz said in an email on Wednesday.
Dollar Thrifty is being wooed by both Avis Budget CAR.N and Hertz Global, the No. 2 and No. 3 car rental firms respectively, with Avis looking to defend its market share and Hertz aiming to displace Avis. [ID:nSGE6420H6]
The FTC sought additional information from Avis Budget as well, Avis Budget said on Tuesday. [ID:nSGE65E0FN]
Avis Budget is yet to make a bid for Dollar Thrifty. The company in May had said it was interested in making a "substantially higher" offer.
Analysts had raised concerns that both the deal attempts could draw lot of scrutiny from antitrust authorities as the consolidation in the rental car business has been rapid. [ID:nSGE63T0J6]
The car rental market in the United States is dominated by privately held Enterprise, which has a market share of 31 percent.
A Dollar Thrifty buyout can lead to a scenario where just three companies -- Enterprise, Avis and Hertz -- sharing the market among themselves.
According to its merger agreement with Dollar Thrifty, Hertz agreed to divest its Advantage brand and up to $175 million worth of revenue-generating business lines or locations to get antitrust clearance.
Hertz bought Advantage, with annual revenue of $146 million, out of bankruptcy in 2009.
Avis, if it buys Dollar Thrifty, would have four brands, and the biggest share in the budget rental market.
Shares of Hertz were down 3 percent at $10.50 in morning trade on the New York Stock Exchange. Avis Budget shares were trading down 3 percent at $11.56. (Reporting by Bijoy Koyitty in Bangalore; Editing by Don Sebastian)
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