Dollar-Thrifty-Hertz?

[sgrizzle]

http://www.tulsaworld.com/business/article.aspx?articleID=20081015_54_E1_Therep916036

quote:
Analysts speculate on sale of Dollar Thrifty

by: Staff and Wire Reports
10/15/2008  12:00 AM

The replacement of Dollar Thrifty Automotive Group Inc. President and CEO Gary L. Paxton with Chief Financial Officer Scott L. Thompson may speed the car rental company's sale to a rival, a national analyst said Tuesday.

Dollar Thrifty announced the leadership change late Monday. The Tulsa-based company said Paxton will remain a director at Dollar Thrifty and will provide transition support through the end of the year, when he will retire.

In a note to investors Tuesday, Soleil Securities Group analyst Michael Millman said the move might allow the company to act on strategic alternatives more quickly.

"The CEO change doesn't change our doubt that (Dollar Thrifty) can survive as an independent in today's environment," Millman said.

The analyst said, however, that a sale is probably Dollar Thrifty's best alternative. He expects the company to be acquired by Hertz.

Fred Russell, principal with Fredric E. Russell Investment Management in Tulsa, agreed that Hertz is a likely buyer.

"I've long thought there are too many car-rental companies," Russell said in an interview. "I think Hertz would rather buy Dollar Thrifty than see it go bankrupt."

Combining the two would offer many efficiencies, Russell said, including the combining of information technology, accounting, reservation systems and marketing.

"Dollar Thrifty is backed into a corner right now," the money manager said. "With a stock price of $1, it would be very hard for management to resist a reasonable offer."

At midyear, the Tulsa car-rental firm employed 8,500 people worldwide and about 970 in Tulsa.

Dollar Thrifty's stock traded above $55 in February 2007 after rumors surfaced that the company and Tulsa-based Vanguard Car Rental USA Inc. were in merger talks. Such a deal never materialized. Vanguard later was purchased by Enterprise Rent-A-Car.

Shares of Dollar Thrifty gained 6 cents Tuesday to close at $1.03.

[cannon_fodder]

-970 office jobs in Tulsa would be (another) huge blow.

Kathy Taylor:
- SemGroup
- Citgo
- Local technology company
- AA jobs

Not necessarily her fault I understand, but for the "business mayor" I'm struggling to think of something to put in the "W" column.

[sgrizzle]

quote:Originally posted by cannon_fodder

-970 office jobs in Tulsa would be (another) huge blow.

Kathy Taylor:
- SemGroup
- Citgo
- Local technology company
- AA jobs

Not necessarily her fault I understand, but for the "business mayor" I'm struggling to think of something to put in the "W" column.

I thought Citgo was leaving under lafortune. And they are building a new hangar for more AA work which means they are doing some expansion in Tulsa while making huge cutbacks in other locations.

[cannon_fodder]

I hate you. []

Citgo was on the way out, but it was made final.  And it has not been announced officially if AA is hiring, or firing in Tulsa.

My point still stands, she has not wooed any new and wonderful businesses into downtown office space.  Well, except for City Hall.  I really expected her to get some new company to open up an office here, not sure what.  With the smoozing all over the country, the PGA VIP tent, and general business connections.  What do we have to show for any of it?

Another city hall building.  That's it.  That is her triumph thus far.  And I'm not a fan of that move given that the old one is still costing us money and the new one isn't making any.

[TUalum0982]

I don't know how this would benefit Hertz in any way. Yes you can integrate each companies accounting, IT, and other departments, but in terms of service to the customer I don't think it would be beneficial.

Hertz is catered more towards business travelers whereas Dollar/Thrifty cater more towards leisure travelers.  The companies fleet of cars (DTG vs Hertz) are completely different.  Hertz usually has nicer quality cars with an immense selection to choose from whereas DTG generally has your standard run of the mill everyday selection.  

If Hertz were to buy DTG and offer business travelers the same service and quality that they have come to expect at a lower price, how would Hertz stay in business.

Not to mention, Hertz has been cutting costs and employees since late last year.  None the less, time will tell how this will work out.  I know some people employed at the DTG corporate office, hopefully their jobs will be safe.

[Conan71]

quote:Originally posted by cannon_fodder

I hate you. []

Citgo was on the way out, but it was made final.  And it has not been announced officially if AA is hiring, or firing in Tulsa.

My point still stands, she has not wooed any new and wonderful businesses into downtown office space.  Well, except for City Hall.  I really expected her to get some new company to open up an office here, not sure what.  With the smoozing all over the country, the PGA VIP tent, and general business connections.  What do we have to show for any of it?

Another city hall building.  That's it.  That is her triumph thus far.  And I'm not a fan of that move given that the old one is still costing us money and the new one isn't making any.

Hey, take it easy Cannon.  Many $10 an hour call center jobs with minimal bennies have come into town during her tenure.  Give her some credit.

I guess everyone heard there's a shut down for a few days at Gatorade in Pryor and 22 people are being laid off permanently?

[SXSW]

Not sure where the other thread went?  But interesting that we were discussing this possible merger back at the end of 2008 and now it finally happens.  At this point it's anyones guess what will happen to the jobs in Tulsa.  I know a contractor that has done some work in their buildings on 31st and says there is a lot of vacant space due to their workforce being trimmed down considerably over the past several years.  He believes the 700 employees in Tulsa number being used by the media is way too high.  

If I was the City or Chamber I would be doing everything I can to get Hertz to move its OKC operations to Tulsa, and not vice-versa.  Hopefully the Dollar Thrifty CEO does the same during final negotiations.  I used to work near the Hertz facility in north OKC, it's a one story building adjacent to a large parking lot near Penn & Hefner, next to Love's corporate offices.  Unless they built a parking garage, or have a massive basement, there is not much room for expansion.  You could sell Hertz that there is plenty of space already available in one location in Tulsa.  Even if they moved the 1,700 from OKC to Tulsa they still wouldn't completely fill up those towers on 31st.

http://www.tulsaworld.com/business/article.aspx?subjectid=54&articleid=20100427_54_A1_Dollar254294

[patric]

I tried the link (from the mysterious vanishing thread) from Hertz where you could purchase rental cars, and there were zero vehicles of any make or model available within 200 miles of Tulsa.

But then again, I got similar results trying a similar link from Dollar Thrifty.  It seeems DTAG not longer offers vehicles from their fleet for sale in Tulsa like they used to.

[fotd]

Scott Thompson was a nobody in 2008....now he's a stud. A big stud.

[kylieosu]

I tried the link (from the mysterious vanishing thread) from Hertz where you could purchase rental cars, and there were zero vehicles of any make or model available within 200 miles of Tulsa.

But then again, I got similar results trying a similar link from Dollar Thrifty.  It seeems DTAG not longer offers vehicles from their fleet for sale in Tulsa like they used to.

http://www.thriftycarsales.com/

[stageidea]

Looks like Avis is wanting to put a bid down for Dollar Thrifty:

http://www.reuters.com/article/idUKTRE6422TA20100503?type=companyNews

[SXSW]

Looks like Avis is wanting to put a bid down for Dollar Thrifty:

http://www.reuters.com/article/idUKTRE6422TA20100503?type=companyNews

That could be better for Tulsa.  I say throw every incentive the city/state can afford (which probably isn't much right now) to have them move their HQ from Parsippany, NJ to Tulsa or at least keep the Tulsa office as a regional HQ for the Dollar Thrifty subsidiary.

[Hoss]

That could be better for Tulsa.  I say throw every incentive the city/state can afford (which probably isn't much right now) to have them move their HQ from Parsippany, NJ to Tulsa or at least keep the Tulsa office as a regional HQ for the Dollar Thrifty subsidiary.

Or (maybe I'm misreading you here) move the DTAG employees into the Avis facility in the old Oxy Center.  Win/win.  Avis could sell the DTAG buildings but not worry about the backlash since they'd only be moving employees about six miles.

[SXSW]

Or (maybe I'm misreading you here) move the DTAG employees into the Avis facility in the old Oxy Center.  Win/win.  Avis could sell the DTAG buildings but not worry about the backlash since they'd only be moving employees about six miles.

The Oxy Center, is that downtown? 

[Conan71]

I think he's referring to 51st & 129th out by State Farm