May 10 Hertz Global Holdings Inc , which
has made a renewed bid for smaller rival Dollar Thrifty
Automotive Group , may consider spinning off its
equipment rental unit to focus on its car rental business, a top
The equipment business, which rents out excavators,
electrical tools and air compressors among other industrial
products, accounts for 15 percent of the company's revenue and
has been undergoing restructuring to cut costs.
Hertz said as the effect of the restructuring starts to show
in the unit's operating results in the next 12-24 months, the
company may consider spinning it off or explore other options.
"We would only do that if we generate positive shareholder
value and get a fair valuation for the business," Chief
Executive Mark Frissora said at a Wells Fargo Securities
Industrial and Construction Conference.
"That is a possibility and it is something we might look at
in the future."
Hurt by the economic downturn, Hertz closed about 22
branches in its U.S. equipment rental business in 2008. It also
restructured its car hire business, closing 250 off-airport car
In its most-recent quarter, equipment rental revenues rose
13 percent to $268.2 million.
The CEO's comments come a day after Hertz raised its bid for
Dollar Thrifty by about 30 percent to $2.1 billion -- the latest
move in its 13-month-long battle with Avis Budget Group Inc
to buy the smaller car rental company. [ID:nL3E7G91KA]
Hertz shares were trading down 1 percent at $16.50 on
Tuesday on the New York Stock Exchange, while shares of Dollar
Thrifty were up 3 percent at $81.66.
(Reporting by Megha Mandavia and A. Ananthalakshmi in
Bangalore; Editing by Saumyadeb Chakrabarty)
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