Hertz says likely to sell Advantage at a loss
Aug 3 (Reuters) - Hertz Global Holdings Inc said it expects to take a loss on any sale of its Advantage budget car rental business, which it would have to shed to win antitrust clearance for a potential acquisition of Dollar Thrifty Automotive Group Inc.
Hertz continues to be in talks with the Federal Trade Commission to win regulatory approval for a potential Dollar Thrifty deal, the No.2 U.S. car rental company said in a filing with the Securities and Exchange Commission.
New Jersey-based Hertz has been pursuing smaller rival Dollar Thrifty, along with Avis Budget Group Inc, for more than two years but antitrust issues have clouded the process.
Dollar Thrifty earlier this week urged Hertz to put an end to two years of fruitless takeover offers by making a compelling bid or let it continue as a stand alone company.
Hertz would have to sell Advantage, which competes with Dollar Thrifty in the leisure segment of the market, to win antitrust approval.
It bought Advantage, which offers cheaper car rentals, out of bankruptcy in 2009 for $33 million.
Hertz said in May it has agreed on the material terms of a sale of its Advantage business with a potential buyer.
Several analysts and shareholders identified U-Save Car & Truck Rental, owned by Franchise Services of North America Inc , as a potential buyer.
- Tweet this
- Share this
- Digg this