Hertz and Dollar Thrifty Jump on Deal
NEW YORK (TheStreet) -- Hertz (HTZ) - Get Hertz Global Holdings Inc Report stock has skyrocketed 17.3% to $15.11 and (former) competitor Dollar Thrifty Automotive (DTG) has jumped 8.9% to $42.30 after the vehicle rental companies on Monday announced that they have entered into an agreement for the former to buy the latter for roughly $1.17 billion in cash and stock. Hertz also raised its full-year guidance.
"Combining Hertz and Dollar Thrifty is an excellent strategic fit," Hertz chief executive Mark Frissora said in a written statement. "Dollar Thrifty is a $1.6 billion business with more than 1,550 corporate and franchise rental locations worldwide which, when combined with our global network, will serve rental customers on six continents from approximately 9,800 locations."
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On Monday, Hertz also raised its full-year adjusted revenue and earnings per share guidance compared with the guidance previously provided on February 24. The company now expects to generate worldwide revenues in the range of $7.5 billion to $7.7 billion, up from $7.4 billion to $7.6 billion and adjusted earnings per share in the range of 43 cents to 45 cents a share, up from 37 cents to 39 cents a share.
Analysts surveyed by Thomson Reuters have forecast earnings of 44 cents a shares on revenue of $7.45 billion.
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-- Reported by Andrea Tse in New York
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