NEW YORK (TheStreet) -- Avis Budget (CAR) - Get Report stock has advanced by more than 4.8% to $11.61 after Dollar Thrifty Automotive (DTG) confirmed that it received an unsolicited acquisition proposal from the former for $39.25 in cash and 0.6543 share of Avis Budget stock for each Dollar Thrifty share.

The offer represents a 17% premium over an existing offer from

Hertz Global Holdings

(HTZ) - Get Report


The Dollar Thrifty board of directors said it will review and consider the terms of the Avis Budget proposal consistent with the company's commitments under the Hertz merger agreement. Hertz and Dollar Thrifty executed a merger agreement on April 25 and the company continues to be bound by the terms of that agreement.

On Tuesday, Avis amended a credit facility to secure financing for the Dollar Thrifty offer, saying that it anticipates making a much higher bid for the company.

"We believe that the higher purchase price we are offering, combined with the terms of our proposed merger agreement, makes our offer a superior one from the perspective of Dollar Thrifty and its shareholders," Avis Budget management said in a letter to Dollar Thrifty on Wednesday.

"Hertz should be required to agree to accept these provisions as a condition to Dollar Thrifty permitting Hertz to continue to make offers for the company."

According to a


report on Tuesday, Avis was amending its JP Morgan-led credit facility and looking to increase the maximum amount of first-lien senior secured debt to $2 billion from $1.5 billion.

Shares of Dollar Thrifty are up 1.1% to $49.23. Hertz stock is up 0.7% to $11.08.

-- Reported by Andrea Tse in New York

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