Hertz Wins Bid to Buy Dollar Thrifty

[zstyles]

Hertz agreed to pay $87.50 per Dollar Thrifty share—an 8% premium over the stock's Friday closing price of $81—as it looks to complete its two-year pursuit of its smaller rival. The price is more than twice the $41-per-share offer Hertz made in 2010.

[Conan71]

Hertz agreed to pay $87.50 per Dollar Thrifty share—an 8% premium over the stock's Friday closing price of $81—as it looks to complete its two-year pursuit of its smaller rival. The price is more than twice the $41-per-share offer Hertz made in 2010.

What happens to the Tulsa employees?

[Townsend]

What happens to the Tulsa employees?

They're all wearing shades because their future looks amazingly bright.  That's a guess.

[carltonplace]

They're all wearing shades because their future looks amazingly bright.  That's a guess.

Company mouthpiece states that the Dollar employees will be given jobs in the new company.

[AquaMan]

Lot porters...

[carltonplace]

Lot porters...

Washing cars can be fun and fulfilling.

[Oil Capital]

Company mouthpiece states that the Dollar employees will be given jobs in the new company.

Did the mouthpiece mention where those jobs might be located?

[zstyles]

This has happened before with many other large companies as you all know, doubting they will pickup and leave anytime soon, also doubting that this will take ALL the jobs out of Tulsa. Tulsa is actually a pretty decent size car rental hub, Enterprise holdings, National/Alamo have a large facility here in the Cherokee Industrial park, sure after Enterprise bought out National/Alamo alot of jobs went (and people didn't) to St. Louis, the same with Verizon, they bought out MCI (which was another story) Verizon still has a large employee base here in Cherokee..Avis/Budget still has a large facility here in Tulsa off the BA...while Oklahoma City has a nice large office but there are not many other rental car players in OKC...its all a what if at this point but no one will really know until they run the numbers...there are many highly successful and talented people in Tulsa at DTAG and they do have the fact that the facility they are in has room for expansion or reduction but the property is owned and paid for...lets see what the Tulsa Chamber can do for you today....

[DTowner]

We'd better hurry and get that deal closing fund in place....

My concern for the medium and long-term is Hertz has a facility in OKC.  Not sure they will keep large operations in both cities.

[Oil Capital]

This has happened before with many other large companies as you all know, doubting they will pickup and leave anytime soon, also doubting that this will take ALL the jobs out of Tulsa. Tulsa is actually a pretty decent size car rental hub, Enterprise holdings, National/Alamo have a large facility here in the Cherokee Industrial park, sure after Enterprise bought out National/Alamo alot of jobs went (and people didn't) to St. Louis, the same with Verizon, they bought out MCI (which was another story) Verizon still has a large employee base here in Cherokee..Avis/Budget still has a large facility here in Tulsa off the BA...while Oklahoma City has a nice large office but there are not many other rental car players in OKC...its all a what if at this point but no one will really know until they run the numbers...there are many highly successful and talented people in Tulsa at DTAG and they do have the fact that the facility they are in has room for expansion or reduction but the property is owned and paid for...lets see what the Tulsa Chamber can do for you today....

You are quite right.  We simply will not know for some time (and I'm sure nobody at Hertz knows for sure at this time either).  Do you know how many jobs Enterprise/Alamo/National still has in Tulsa and how many Verizon still has at Cherokee?  Also, how many does Level 3 have in Tulsa (what used to be Williams Communications)?

[Teatownclown]

The deal closing fund...that's the ticket!

Start with the leases and the term left. Is that building theirs? Or, do they lease?


I don't believe what corporations say. I always let them prove my thinking is wrong. I bet there's already some desks cleaning out...

[zstyles]

They own all three buildings from what I hear from my friends there...lots of prime real estate right off the BA...

[Conan71]

They own all three buildings from what I hear from my friends there...lots of prime real estate right off the BA...

It's only "prime" real estate so long as there's a line of people waiting to occupy it if DTAG moves out.

[Teatownclown]

Well good. That means local owners won't be sucking wind and that Hertz won't be in any big rush to consolidate. But somebody's going to lose and my guess would be unfortunately starting with the worker bees.

Kudos to those that resurrected this company before they melted down in 2009. Turned it around quickly. Many Tulsans made big bucks to spend locally.

[Townsend]

Tulsa Employees Guaranteed Jobs for 4 Months After Merger With Hertz

http://www.ktul.com/story/19385472/hertz-to-buy-dollar-thrifty-for-23-billion?utm_source=twitterfeed&utm_medium=twitter

Tulsa, Oklahoma -
Employee's at Dollar Thrifty's Tulsa headquarters are guaranteed jobs for at least four months after merging with Hertz, according to information filed with the Securities and Exchange Commission.

The memo filed Monday with the Commission was issued to Dollar Thrifty managers and featured key points of the merger agreement announced on Sunday. Hertz has agreed to purchase Dollar Thrifty for about $2.3 billion.

The memo states that all Tulsa employees will be retained for four months and provides severance payments for anyone who is terminated at the end of the four month period.

Dollar Thrifty employees 5,900 employees, including almost 800 at its Tulsa headquarters.

Mike Neal, president and CEO of the Tulsa Metro Chamber, said the Chamber has been monitoring the situation and looks forward to working with Hertz.

"The Chamber welcomes Hertz as a new corporate partner in Tulsa and will aggressively work to ensure the company's integration plans result in positive protections for the Tulsa area workforce," Neal said. "The employees of the rental car industry are a tremendous asset in the travel industry sector, which is closely aligned with the vital aviation and aerospace industry in the Tulsa region."

The announcement Sunday ended two years of competition to buy the company.

Avis Budget Group was also in the mix, pursuing a bid for Dollar Thrifty for more than a year. Avis dropped its bid nearly a year ago citing market conditions. Then, in October of last year, Hertz dropped its bid, too. But Dollar Thrifty didn't trust that the years of attempts were over. In February, it extended its shareholder rights plan known as a "poison pill" - a maneuver designed to deter any unsolicited attempts to take over the company - through May 2013.

Hertz Chairman and CEO Mark P. Frissora said in a statement that the Dollar Thrifty buyout will give it access to two well-known rental car brands - Dollar and Thrifty - as well as make it a more competitive player in Europe and other markets overseas.

"We are pleased to have finally reached an agreement with Dollar Thrifty after a lengthy - but worthwhile - pursuit," he said.

Both Hertz and Dollar Thrifty's boards have unanimously approved the deal, which still needs antitrust clearance from the Federal Trade Commission. Hertz said it has stayed in close contact with the FTC to secure clearance and that Dollar Thrifty will fully cooperate with the process.