PARK RIDGE, N.J. (
raised its offer for
to $50 of cash and stock a share, or $1.56 billion, and the Dollar Thrifty board agreed to the deal.
The offer consists of $43.60 in cash (including about $6.87 a share to be paid by Dollar Thrifty as a special cash dividend) and 0.6366 of a Hertz common share. The new agreement adds $10.80 a share to the cash consideration to be paid to Dollar Thrifty shareholders.
Hertz originally offered $41 a share to buy Dollar Thrifty.
The Dollar Thrifty board postponed its shareholders' meeting scheduled for Thursday to allow shareholders time to consider the new Hertz' proposal. Some Dollar Thrifty shareholders have protested the board's rejection of a $1.3 billion cash-and-stock counteroffer from rival
Avis Budget Group
A $44.6 billion breakup free remains unchanged from Hertz' original proposal. Avis had offered more than $47 a share for Dollar Thrifty, but the offer didn't include the breakup fee Hertz promised to Dollar Thrifty if Hertz fails to close the deal.
Hertz also said it has begun the process of divesting Advantage Rent-a-Car to facilitate the closing of the acquisition.
-- Written by Joseph Woelfel
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