F/HRZ: Ford to Buy Remainder of Hertz it Doesn't Own

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Ford Motor

(F) - Get Report

proposed to reacquire the 18.5% of

Hertz

(HRZ)

outstanding stock that it doesn't already own. Through the proposed transaction, Hertz shareholders would receive $30 for each share of class A common stock they own. The price represents a premium of about 24% over Hertz's closing price yesterday of $24.25.

In 1997, Ford spun off Hertz in an IPO in an effort to take advantage of investor interest in the car rental industry.

The deal is subject to the approval of Hertz's board of directors.