Dollar/Thrifty/Hertz/Avis

[restored2x]

If my math is correct (never was good at math) - he stands to make $815,796 - he paid 19.38 on 25,800 shares for an outlay of $500,004. If Hertz deal goes through, he gets $51.00 a share, the difference between $51.00 and $19.38 is $31.62. That times 25,800 equals $815,796 in pure profit.

Yeah, I guess I can see why he's pushing the deal. That doesn't include his $20 Million in golden parachute buyout money in the deal.

Even if the deal doesn't get approved, he's still made that money. Is this illegal?

EDIT: My bad - since it is an "option" it was free stock that was worth $19.38 when issued to him. Smart businessman. So, it is all pure profit.

[restored2x]

Just got an answer on that deal - nobody has been told by legal that they couldn't trade - so I guess he's cool. I was questioning, not accusing.

[swake]

Just got an answer on that deal - nobody has been told by legal that they couldn't trade - so I guess he's cool. I was questioning, not accusing.

Wow, just plain wow.

Every merger I have ever been through, and that's a lot of mergers, had a blackout period where employees could not buy or sell stock.

[restored2x]

Wow, just plain wow.

Every merger I have ever been through, and that's a lot of mergers, had a blackout period where employees could not buy or sell stock.

That seems to be normal protocol. Don't know why the blackout period wasn't enforced.

[Renaissance]

If they own stock options, they can exercise whenever they want.  That's the point of the option, which I assume they received at some point in lieu of cash compensation.  

I don't see it as dirty.  They don't know the next time DTAG will trade this high so they're cashing out.

[restored2x]

They keep delaying the vote because of lots of last-minute proxy votes. Since AVIS sweetened its deal, I think many are changing their vote to "no". The announcement of the results has been delayed 3 hours. Meanwhile, DTAG stock is inching up and Hertz is inching down.

[sgrizzle]

The Vote is in!!

Shareholders have voted...

NO!

[Conan71]

Woot!

[restored2x]

The Vote is in!!

Shareholders have voted...

NO!

http://www.bloomberg.com/news/2010-09-30/dollar-thrifty-shareholders-vote-against-hertz-offer.html

2 Million vote margin!!!!!

[Conan71]

"Dollar Thrifty Chief Executive Officer Scott Thompson declined to comment after the meeting. "

Awww, I guess Scottie wanted to go pout about losing out on his $20mm golden parachute.

I appreciate what he did to turn the company around, but can't get past the way he tried to sell us down the road.

We owe a huge thanks to PAR as they own 2.19mm shares and their no vote sealed it.

[dbacks fan]

http://www.bloomberg.com/news/2010-09-30/dollar-thrifty-shareholders-vote-against-hertz-offer.html

2 Million vote margin!!!!!

And in reading the article it looks like PAR Capital Management holding the largerst number of shares (2.19mil) was the decider in this. I see they felt the Hertz offer was not adeaquate. So does this completely open the door for Avis?

[SXSW]

Okay now that Hertz is out of the picture (for now), how would a merger with Avis save jobs in Tulsa?  Wouldn't the execs still move to NJ?  And isn't the existing Avis office here just a call center? 

[Townsend]

Why is the Tulsa World saying "narrowly rejected"?

[restored2x]

As mentioned earlier, AVIS has expressed an "inclination" to move from Parsippany, NJ to here. That would be great. As far as I know, all they have here now is a res center. When I worked there about 11 years ago, it also housed the Corporate Business Department. I worked in that department, loved it, but the pay was apalling - so I went to Sabre until they dissolved.

If AVIS does have that inclination, it would be an excellent time for the mayor and City Council to find some incentives for the possible relocation. NOW would be the time to move on this. AVIS played hardball on this and seems to be serious. FTC, FCC approval may be more difficult with AVIS, but the percentages are about the same. 70% corporate, 30% leisure (AVIS and Hertz) - so it may be a moot point. DTAG has no corporate travel - per se.

BTW - Hertz is not out of the picture. They are free to continue to bid, under Delaware corp law. If the approving government bodies turn either company down - then DTAG cannot be bought.

The drama will continue, I'm sure. But - we dodged a bullet today. Thanks, PAR!

[sgrizzle]

BTW - Hertz is not out of the picture. They are free to continue to bid, under Delaware corp law. If the approving government bodies turn either company down - then DTAG cannot be bought.

The drama will continue, I'm sure. But - we dodged a bullet today. Thanks, PAR!

Hertz stated they would not re-up or change their offer. A vote "no" would mean they walk away.

Granted there is nothing legally binding them to that statement.