Dollar/Thrifty/Hertz/Avis

[zstyles]

went to BOK today over there, lots of tents up, music food lots of local vendors doing something out there at the HQ..looks like alot of money that wouldn't be spent here when they move.

[SXSW]

The shareholders and feds still have to approve the Hertz merger, and that is not a done deal.  Plus there is still the possibility of an Avis counter-offer or the company remaining independent.  

Tulsa survived when Citgo left and will survive if DTAG leaves too.  Our status as a rental car industry center will forever be lost though, with Vanguard getting bought by Enterprise a few years ago.  

[Conan71]

The shareholders and feds still have to approve the Hertz merger, and that is not a done deal.  Plus there is still the possibility of an Avis counter-offer or the company remaining independent.  

Tulsa survived when Citgo left and will survive if DTAG leaves too.  Our status as a rental car industry center will forever be lost though, with Vanguard getting bought by Enterprise a few years ago.  

As I recall, Citgo had whittled down to about a 100 person workforce in Tulsa before the last of their troops were withdrawn to Houston and I believe all of those people were offered the same job in Houston.  A friend of mine was one of the transferees.  People who stayed generally had something else to go to and companies like SEM were ramping up employment and were able to absorb them.

Pretty much the same thing which happened with Texaco and Amoco, they had siphoned off silently for some time then pulled out the last 100 to 200 employees with little fanfare.

A far bigger cataclysm was the failure of CFS.  We can survive this but I'd really rather not see these jobs lost.

[SXSW]

As I recall, Citgo had whittled down to about a 100 person workforce in Tulsa before the last of their troops were withdrawn to Houston and I believe all of those people were offered the same job in Houston.  A friend of mine was one of the transferees.  People who stayed generally had something else to go to and companies like SEM were ramping up employment and were able to absorb them.

Pretty much the same thing which happened with Texaco and Amoco, they had siphoned off silently for some time then pulled out the last 100 to 200 employees with little fanfare.

A far bigger cataclysm was the failure of CFS.  We can survive this but I'd really rather not see these jobs lost.

Most definitely.  Though I dispute the 700 jobs number that the media keeps using.  From what I've heard it's much lower than that and many of the floors in their building are empty.  Either way it's another HQ lost and that is not good for the city.  The good news is there are several smaller local companies like Magellan Midstream, RAM Energy, Xeta Technologies, etc. that are growing which helps offset any loss from DTAG which, at least for the past few years, has been unstable and just two years ago was practically bankrupt.  The turnaround has been nothing short of amazing.  Hopefully shareholders acknowledge that.

[restored2x]

went to BOK today over there, lots of tents up, music food lots of local vendors doing something out there at the HQ..looks like alot of money that wouldn't be spent here when they move.

Yeah, they are having some kind of employee "tailgate" party, and I think more fundraising for United Way. (Dunk Tanks, games, etc.) Interestingly enough, nobody there has even been told about the newest offer.

I understand that this city has continued to survive when large companies have left us. It appears to be the spirit of this city. My problem, I think is the fatalistic attitude and lack of fight. This forum is the essence of changing that attitude. We don't need to be known as a city that survives - we want to be a city that thrives. Having aan attitude that just says, "Shjyy Happens" and not making our passion and opinions known is, in my opinion, defeatest and discouraging.

I think it is inevitable that they leave. That being said, I think it is appropriate to strongly disagree and make our voice heard. This is a great opportunity to express how much we dig this city and want our businesses to stay.

[restored2x]

Most definitely.  Though I dispute the 700 jobs number that the media keeps using.  From what I've heard it's much lower than that and many of the floors in their building are empty.  Either way it's another HQ lost and that is not good for the city.  The good news is there are several smaller local companies like Magellan Midstream, RAM Energy, Xeta Technologies, etc. that are growing which helps offset any loss from DTAG which, at least for the past few years, has been unstable and just two years ago was practically bankrupt.  The turnaround has been nothing short of amazing.  Hopefully shareholders acknowledge that.

The figure is closer to about 650, maybe 600.

I am thrilled that new businesses are thriving. Good to hear that good news. Just truly wish we could somehow keep DTAG here.

[SXSW]

The figure is closer to about 650, maybe 600.

I am thrilled that new businesses are thriving. Good to hear that good news. Just truly wish we could somehow keep DTAG here.

They haven't announced they are leaving.  No reason to worry about it yet.  And I'm confident the Chamber is doing whatever they can to make sure the jobs stay in Tulsa.  However that is the unfortunate thing about company mergers.  The company that is being bought, and the city where they are headquartered, almost always loses out. 

Obviously the best option is for DTAG to stay its own company, which is still a very real possibility.  The second best option is for Avis to up its offer which would protect many of the jobs due to Avis' presence in Tulsa.  Finally if Hertz does indeed win out they would still move upper management to NJ and probably many positions to their base in OKC but could maintain DTAG as a 'wholly-owned subsidiary' with offices and management in Tulsa. 

[restored2x]

They haven't announced they are leaving.  No reason to worry about it yet.  And I'm confident the Chamber is doing whatever they can to make sure the jobs stay in Tulsa.  However that is the unfortunate thing about company mergers.  The company that is being bought, and the city where they are headquartered, almost always loses out. 

Obviously the best option is for DTAG to stay its own company, which is still a very real possibility.  The second best option is for Avis to up its offer which would protect many of the jobs due to Avis' presence in Tulsa.  Finally if Hertz does indeed win out they would still move upper management to NJ and probably many positions to their base in OKC but could maintain DTAG as a 'wholly-owned subsidiary' with offices and management in Tulsa. 

Avis has expressed interest in moving their headquarters from Parsippany, NJ to here. Better incentives and lifestyle here, less expensive, etc. DTAG seems to be ignoring Avis. Their offer was rejected in 2 business days, if I recall correctly. My sources tell me this is probably 98% a done deal. Shareholders wanted more - so Hertz has offered more. The shareholders are not just individuals, but are in mutual funds, etc. as well. If the FTC says no (hope it does say no), then no more offers can be made.

[restored2x]

SXSW:
Checked into the empty office thing. When the economy went south, they outsourced their reservation center. Those floors are now empty. However, at that time, their stocks were selling for less than a dollar. Because of those changes, the company has become a cash cow. Trading today at $50.47.  Dollar shares have doubled this year, while Hertz has lost 10% of the value of their stock.

[/url]http://www.marketwatch.com/story/hertz-shares-rally-7-after-raised-bid-2010-09-13

DTAG still has a reservation center in Talequah.

Thanks so much for being involved in this thread.

[Conan71]

According to KRMG, DTAG board approved it.  On to the shareholders and regulators next.

"(Tulsa, Ok) -- The employment outlook for workers at Tulsa-based Dollar Thrifty Automotive Group is uncertain.  The firm's board of directors has accepted a takeover bid from Hertz, totaling $1.4 billion.  Jim Fram is Vice President for Economic Development with the Tulsa Metro Chamber of Commerce.  He says if Hertz is successful in its' takeover bid of Dollar Thrifty, it would be grim news for Tulsa.  Hertz's offer of $1.4 billion dollars trumps a $1.3 billion dollar cash and stock counteroffer by Avis Budget Group.  Dollar Thrifty shareholders have until September 30th to consider Hertz's offer."

Great news for anyone who bought DTAG at fire sale prices a year and a half ago.  I hate to see this, personally.

http://krmg.com/localnews/2010/09/hertz-outbids-avis-for-dollar.html

Point of personal disclosure: My mother went to work at DTAG in 2000, she was laid off in Oct. of 2001 amidst the recession and the disarray travel was thrown into from 9/11.  They went through every department and cut people right away.  She never held a grudge and appreciated that they could make hard decisions and stick to them instead of riding the company into the ground.  She was in her mid-60's at the time and finally just decided to retire and take care of my grandmother who was in declining health at the time, there weren't many other opportunities for someone most people only expected to work a few years at most. 

[YoungTulsan]

Media friends: Investigate, ask the hard questions, serve your community.

Tonight, our Action News squad investigates products that CLAIM to make your dog's coat shinier - do they stack up against their claims?   PLUS - 7 ways your toddler could DIE in his bedroom.  You can't AFFORD to miss Action News 10 at 9!

[restored2x]

Tonight, our Action News squad investigates products that CLAIM to make your dog's coat shinier - do they stack up against their claims?   PLUS - 7 ways your toddler could DIE in his bedroom.  You can't AFFORD to miss Action News 10 at 9!

HaHa! So frickin' true!

[SXSW]

Avis has expressed interest in moving their headquarters from Parsippany, NJ to here. Better incentives and lifestyle here, less expensive, etc.

Hertz is also based in NJ.  Are they not interested in moving as well?  You already have an entire building plus a second building next door that could be used as a base of operations.  There is no need for a rental car business to be close to NYC, which is about the only advantage a NJ headquarters gives you.  However with their existing OKC office they could move there instead if they wanted out of Jersey.  If it comes to it I'd rather see the jobs move down the turnpike then out of state. 

**Hoping Avis makes a counter offer**

[Conan71]

Hertz is also based in NJ.  Are they not interested in moving as well?  You already have an entire building plus a second building next door that could be used as a base of operations.  There is no need for a rental car business to be close to NYC, which is about the only advantage a NJ headquarters gives you.  However with their existing OKC office they could move there instead if they wanted out of Jersey.  If it comes to it I'd rather see the jobs move down the turnpike then out of state. 

**Hoping Avis makes a counter offer**

Not going to happen, the board approved Hertz' offer at $50 a share.

[YoungTulsan]

Maybe they can spend their powerball payoffs in the Tulsa economy