RiskMetrics advises against Hertz-Dollar Thrifty bid

NEW YORK (Reuters) - Proxy advisory firm RiskMetrics Group has advised Dollar Thrifty Group (DTG.N) shareholders to vote against the car rental company's $1.1 billion takeover by Hertz Global Holdings (HTZ.N), saying the bid is not high enough.

RiskMetrics, which advises institutional investors how to vote in deals and proxy contests, also criticized the sales process that resulted in the deal.

"We believe that the combination of an exclusive process and restrictive deal terms, in the absence of an urgent need to sell, were not conducive to maximization of shareholder value," RiskMetrics said in the report, issued earlier this week.

Hertz agreed to buy Dollar Thrifty in April, but rival Avis Budget Group CAR.N has since submitted a higher bid for Dollar Thrifty.

Risk Metric did not make any recommendation on the Avis bid.

Hertz's bid is currently worth about $39.04, well below the Avis bid of $47.40 on September 2, and Dollar Thrifty's current share price of $47.56.

Low-cost brands like Dollar Thrifty -- one of the few major car rental brands to post a profit in 2009 -- have become increasingly important in the car rental industry as consumers try to save money in tight economic times.

(Reporting by Michael Erman; Editing by Steve Orlofsky)