Dollar/Thrifty/Hertz/Avis

[restored2x]

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**

Hertz has no intentions of moving from NJ.

Also, YoungTulsan - even though the board approved the offer, anyone can make a counter-offer until the stockholders vote, even Donald Trump, or Mr. Kaiser.

[sgrizzle]

Hertz has no intentions of moving from NJ.

Also, YoungTulsan - even though the board approved the offer, anyone can make a counter-offer until the stockholders vote, even Donald Trump, or Mr. Kaiser.

Technically anyone can make a counteroffer AFTER the stockholders vote too, so long as they vote no.

[restored2x]

sgrizzle - from your mouth to God's ears.

[kylieosu]

Avis just made another bid.

http://finance.yahoo.com/news/Avis-Budget-Increases-Its-prnews-2519691304.html?x=0&.v=1

[zstyles]

Hertz stock is fascinating and also very scary, not sure why management at DTG is even letting them court, they obv. don't care about the company which is clear.  Hertz is controlled by private equity but considered a public company. Last year they diluted the outstanding shares with a secondary and convertible offering at 6.78/share and the stock went up over 100%. They issued 400mil Euro of new debt last week. They are issuing 300mil more debt now. As of the latest 10Q they have an imbalance in AP/AR of $1,200,000,000.

That is they owe creditors over a billion bucks more than they have in current receivables. This imbalance has escalated in the past 6 months. They have 2.7 billion in goodwill. They are under review for downgrade to spec.

Over 2 billion in debt is over 10% interest.

Once the deal is finalized they will have 800 mil in cash and will be in default by 400 mil if required to pay creditors on time. This will be very interesting to watch over the next few months.

[swake]

Avis may have just won, Hertz won't raise to match Avis' latest offer:

http://www.bloomberg.com/news/2010-09-24/hertz-says-1-44-billion-dollar-thrifty-offer-is-its-best-and-final-bid.html

[restored2x]

Hertz stock is fascinating and also very scary, not sure why management at DTG is even letting them court, they obv. don't care about the company which is clear.  Hertz is controlled by private equity but considered a public company. Last year they diluted the outstanding shares with a secondary and convertible offering at 6.78/share and the stock went up over 100%. They issued 400mil Euro of new debt last week. They are issuing 300mil more debt now. As of the latest 10Q they have an imbalance in AP/AR of $1,200,000,000.

That is they owe creditors over a billion bucks more than they have in current receivables. This imbalance has escalated in the past 6 months. They have 2.7 billion in goodwill. They are under review for downgrade to spec.

Over 2 billion in debt is over 10% interest.

Once the deal is finalized they will have 800 mil in cash and will be in default by 400 mil if required to pay creditors on time. This will be very interesting to watch over the next few months.

None of the "higher-ups" at DTAG have roots in Tulsa. They are business men and women. Their personal incentive is to get that giant payoff and get out of dodge. This is just about a done deal. Unfortunate.

[restored2x]

Avis may have just won, Hertz won't raise to match Avis' latest offer:

http://www.bloomberg.com/news/2010-09-24/hertz-says-1-44-billion-dollar-thrifty-offer-is-its-best-and-final-bid.html

AVIS is confusing. They offer more money - but refuse to offer the 44M "backup coverage" if the FTC says no-go. Makes no sense. Sources tell me that the Board isn't even looking at AVIS' offer. They seem to be in love with the Hertz takeover. The whole merge/takeover (if approved) should last about 2 years, with people losing their jobs little-by-little.

AVIS is at a disadvantage because they are really AVIS/Budget and DTAG is Dollar/Thrifty. Hertz is selling its Advantage sites - so as to clear the way for FTC approval. AVIS has Budget, which is leisure/economy - so the FTC may not be as inclined to approve.

[SXSW]

So if Hertz wins out what is the likelihood of any jobs remaining in Tulsa?  Or do they all either go to New Jersey or OKC?  It seems like the Dollar/Thrifty subsidiary would still have to be managed somewhere, why not Tulsa? 

[restored2x]

So if Hertz wins out what is the likelihood of any jobs remaining in Tulsa?  Or do they all either go to New Jersey or OKC?  It seems like the Dollar/Thrifty subsidiary would still have to be managed somewhere, why not Tulsa? 

As I understand it, after the 2 years - there will be no presence in Tulsa (except an airport counter location). If anyone stays on because of lack of duplicity - they will have to move to NJ or OKC - wherever that job may be based. There will be two giant empty buildings on 31st St, though. Maybe they'll rent the office space out - who knows?

[restored2x]

More News on DTAG purchase -

"(Reuters) - PAR Capital Management, one of Dollar Thrifty Group's (DTG.N) top shareholders, plans to vote against the car rental company's deal to be bought by Hertz Global Holdings Inc (HTZ.N), PAR's president told the Wall Street Journal on Tuesday.
PAR owns about 7.7 percent of Dollar Thrifty, the report said.  (That's 2,191,800 no votes)

PAR's president Paul Reeder told the Journal that the Hertz bid "doesn't fully compensate us for the value of Dollar Thrifty as a going concern."

Shareholders are scheduled to vote on the Hertz bid on Thursday. Rival Avis Budget (CAR.N) also has a higher bid on the table, but Dollar has stood by the Hertz deal, citing worries about Avis' ability to get antitrust approval."

Small percentage of total shareholders - but by them publicizing it, it may sway other shareholders to vote no. *Fingers crossed*

[SXSW]

As I understand it, after the 2 years - there will be no presence in Tulsa (except an airport counter location). If anyone stays on because of lack of duplicity - they will have to move to NJ or OKC - wherever that job may be based. There will be two giant empty buildings on 31st St, though. Maybe they'll rent the office space out - who knows?

Do they own the buildings on 31st St?

[kylieosu]

Do they own the buildings on 31st St?

Yes, the buildings are owned by DTAG.

[restored2x]

Well, they vote today. AVIS upped the ante and asked them to put off the vote until December - looks like that won't happen, even though AVIS promised 20M in breakup fees now. Too little, too late.

Ticks me off how callous these execs can be. Greed is a nasty thing. Millions in yearly salaries is not enough - not when you can screw everyone and get a $10-20 Million dollar payoff. (30 pieces of silver) Betrayal, lies, misleading and vague information to the rank-and-file employees. Accepting a deal that will eliminate hundreds of jobs and tax revenue for the city. And, it is not even a good deal.

Proxy voters who decline to send in the form are counted as an automatic "NO" vote. PAR is voting NO. Most employees with stock are voting NO.

Interesting article -

Tulsa World

Insider overview: Dollar Thrifty Automotive Group

NYSE: DTG

By NANCY HOLLINGSHEAD World Staff Writer

Published: 9/27/2010  2:19 AM

Last Modified: 9/27/2010  3:57 AM

R. Scott Anderson, senior executive vice president-operations and global sales and marketing, on Wednesday exercised options for 25,800 shares at $19.38 with a market value of $499,875.

This is the first trade for Anderson this year, according to Thomson Reuters, and comes just as Dollar Thrifty shareholders prepare to vote Thursday on a takeover offer from Hertz Global Holdings Inc.

On Friday, Hertz says it was standing by its offer valuing Dollar Thrifty at $50.25 per share, or $1.45 billion. This was after Avis Budget Group Inc. bid $53 per share, or about $1.52 billion in cash and stock.

Also, Kimberly D. Paul, vice president and chief accounting officer, on Tuesday exercised options to buy 800 shares at $19.38 with a market value of $15,500.

Shares of DTG closed Friday at $51.03, down $1.31. They have traded at a low of $17.72, and a high of $53.00

Read more from this Tulsa World article at http://www.tulsaworld.com/business/article.aspx?subjectid=51&articleid=20100927_46_A13_RScott364007

Can someone convince me this is not "Insider Trading"?

[SXSW]

Sounds like these execs have no loyalty to their employees or Tulsa.  If they leave, good riddance.