Dollar/Thrifty/Hertz/Avis

[restored2x]

I haven't posted in quite a while - but I think this is very important. I am SO glad the leaders of our city are standing up today to encourage stockholders of Dollar/Thrifty to NOT take the deal that Hertz is offering. The only people who will benefit from this are the higher-ups. I know one person (who shall remain nameless - ST are his initials) reportedly will get a 20 million dollar golden parachute if the sale goes through. Other top dogs get similiar amounts. These are the ones pushing for the sale. This is NOT a merge, as some have suggested, it is a takeover. MANY local jobs, some with great salaries, will be lost. Even the experts are encouraging stockholders not to accept the deal. $41 per share for a stock that is trading for about $48. What is the incentive? Big-wigs get Powerball-like payouts, while hard working Tulsans get pink slips. Nice. Wall Street greed right here in Tulsa.

Thank you, Mayor and Metro Chamber folks for at least taking a stand on this. This sale, if it goes through will destroy families and hurt our local economy much more than people realize.

Local Report
http://www.newson6.com/global/story.asp?s=13116534

Bloomberg says NO
http://www.bloomberg.com/news/2010-09-07/dollar-thrifty-should-reject-hertz-riskmetrics-says.html

[nathanm]

What was DTAG trading at before the rumors started flying about a takeover bid?

[restored2x]

$42.00

[SXSW]

Avis seems to be the best bet for keeping the majority of jobs in Tulsa, especially considering they already have operations here.  I am hoping Dollar Thrifty remains a wholly-owned subsidiary and keeps most of its management operations at 31st & Yale. 

[restored2x]

I'm really hoping that neither sale goes through, but if it does happen - that they will entertain Avis' higher bid. The only reason their first offer was rejected is because Avis doesn't want to guarantee the "breakup fee" if the government doesn't approve the buy. Hertz has agreed to a breakup fee - I think it's in the ballpark of $40M. When Avis offers almost $300M more, why in the world would they not agree to $40M or so in case the deal goes south?

Hertz will "eat up" DTAG. Jobs will not only be lost here - but also in the 600 or so airport locations that DTAG has across the country. All the local vendors that support DTAG will also be affected.

Please go away, Hertz.

[SXSW]

I'm really hoping that neither sale goes through, but if it does happen - that they will entertain Avis' higher bid. The only reason their first offer was rejected is because Avis doesn't want to guarantee the "breakup fee" if the government doesn't approve the buy. Hertz has agreed to a breakup fee - I think it's in the ballpark of $40M. When Avis offers almost $300M more, why in the world would they not agree to $40M or so in case the deal goes south?

Hertz will "eat up" DTAG. Jobs will not only be lost here - but also in the 600 or so airport locations that DTAG has across the country. All the local vendors that support DTAG will also be affected.

Please go away, Hertz.

What is the likelihood of DTAG remaining its own entity?  It's still profitable with a good stock price, why would they want to merge with another company that could drag it down?  Would it not be better for shareholders/management to keep DTAG intact?  That would be in the best interest of Tulsa as well.

[restored2x]

Makes perfect sense to me. Why become that successful, then sell out for less than market value? I don't think the stockholders will go for this. At least I hope not.

[restored2x]

Now the board of DTAG has accepted a new offer of $50 per share. Sounds fair if you're a stockholder. This is terrible for Tulsa. Many do not understand how the absence of DTAG will affect our local economy.

DTAG donates approximately $1M a year to local charities via the United Way - that will be gone. Where will our local charities replace those much-needed funds?

According to a news report last week, the takeover will cost Tulsa around $10M in tax revenue. Our city budget is already a mess - after this deal goes through, where will we get that $10M? Maybe more police and Fireman layoffs. Turn off the street lights. Don't fix the potholes or cut the grass. This "sale" affects Tulsa in a very negative way.

The "domino effect" will be devastating - foreclosed homes. Taxpayers moving out of state to replace these jobs. Unemployment percentage in Tulsa will go up dramatically. Not only because of those 600 jobs, but because this local company uses local vendors HP/EDS, catering, office supplies, etc. etc. etc. Where will they replace that revenue? They will have to cut back as well. Others will lose their jobs as well.

It may be inevitable - but that doesn't mean we have to sit down and take it without a fight.

What can be done?
I call on the Chamber of Commerce to take up this fight and make it very public. Chamber, ask the Tulsa World to donate a full page and publish an open letter both to educate our community on the impact this will have on us all, and the fact that this is an example of Wall Street greed on 41st St.

Call on local corporations to boycott Hertz as a show of support for the Tulsa economy. They make most of their money on corporate rentals.

Try to make this national news. Speak up. Encourage a national boycott. We are the victims - they are the Wall Street bad guys.

Tulsans - go to DTAG's corporate website and find the email addresses of those in charge of DTAG and write them an email expressing how this move will affect all Tulsans. Do the same with their Board Members. Do the same with the big-wigs at Hertz.

If we refuse to speak up, we will never be heard. They may go through with the "sale" anyway. But they are the bully - we are the small town. We may as well get in one good punch and not sit down in a corner and just take it without a fight.

[SXSW]

It will be interesting to see if Avis makes a counter offer.  When is the shareholder vote, this Thursday?  Any impact to Tulsa is speculation at this point.  Hertz may decide to keep a large percentage of its workforce here. 

[restored2x]

I hope Avis does counter-offer. The shareholders meeting/vote is now on Sept. 30. According to my sources, everything will be absorbed into OKC. Any presence here would be so small scale it would be negligible.

[SXSW]

I hope Avis does counter-offer. The shareholders meeting/vote is now on Sept. 30. According to my sources, everything will be absorbed into OKC. Any presence here would be so small scale it would be negligible.

As do I.  If Hertz wins out, with the amount of space they have at 31st & Yale why wouldn't they just move their OKC operations to Tulsa?  There should be a stipulation that whoever ends up buying DTAG has to maintain a sizable Tulsa presence.  They already have the office space, and costs here are low.  Is the city prepared to offer any incentives?

[Conan71]

SXSW, I believe OKC is the Hertz data and reservation center.  They wouldn't move it to Tulsa in a million years with millions in tax credits.  A lot of data equipment and a lot of specially designed HVAC equipment and environmental systems.  Part of the payback for buyouts like this is paid for via thinning the herd once the deal is complete.

This is unfortunate for Tulsa.  I wish DTAG would simply be happy with staying an independent company instead of being absorbed into something bigger and further limiting choices for the consumer.

[restored2x]

Dig this - the stockholder's meeting, for the first time in the history of the company, will take place, not here at Tulsa DTAG Headquarters, but in Chicago. I think they realize a groundswell of anger and disappointment will meet them if they have it here. Cowards.

Sounds like they are already distancing themselves from the Tulsa community. The decision to screw Tulsa's economy and their own employees (who are the ones that made them so successful in the first place) won't take place here, where they can be held accountable to the community that supported them and needs them now.

If I didn't have a day-job, I'd be the nut-job standing in front of their buildings with giant signs. I'd rent a spot on the giant LCD billboard behind their property on the BAX with a giant arrow pointing towards them - and the caption: Hey DTAG! Thanks for abandoning Tulsa!

[restored2x]

Also - this is a BIG local story. I sure wish it would get more coverage BEFORE it all goes down. Even if neither Hertz nor DTAG people comment - the local media could make Tulsans aware of the damage this will do. Too bad it's not a cold front or a storm - they spend an awful lot of airtime informing us "It's raining in Kansas!".

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

I understand some questions cannot be answered because of legal concerns, but we haven't even gotten a sound byte. All we've gotten is silence. Maybe someone is not asking the right questions.

[waterboy]

I did see it covered on local tv. They haven't really followed up though. Perhaps they don't want to be seen as being negative or maybe they just don't understand the ramifications. Heck, they don't seem to understand much.