Hertz Shares Jumped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of car renter Hertz Global (NYSE: HTZ  ) have jumped up by as much as 12% today on news that rival Avis Budget Group (Nasdaq: CAR  ) has dropped its competing bid to acquire Dollar Thrifty Automotive (NYSE: DTG  ) .

So what: More than a year ago, Hertz originally proposed a $1.2 billion deal to acquire Dollar Thrifty, only to have Avis jump in on the action with a $1.5 billion offer a few months later. A bidding war broke out over the following year to the glee of Dollar Thrifty shareholders, recently sending shares to all-time highs. Avis has now decided to drop its pursuit "in light of current market conditions," leaving Hertz as the sole suitor.

Now what: With Avis out of the running, it will be interesting to see how Hertz will proceed. Presumably the company is still interested in acquiring Dollar Thrifty since during the bidding war it raised its initial $1.2 billion offer up to $2.2 billion in May. With Avis out of the picture and Dollar Thrifty no longer getting the pick of the litter, Hertz shareholders are clearly excited about the prospect of possibly getting a better deal.

Interested in more info on Hertz Global? Add it to your watchlist by clicking here.

Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Hertz Global Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1553102, ~/Articles/ArticleHandler.aspx, 12/20/2014 4:58:41 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement