Business

Hertz outbids Avis in battle for Dollar Thrifty

Tourists queue at Heathrow airport
Image caption Hertz hopes the deal with give it better access to the tourist rental market

Car hire company Hertz has upped its offer for Dollar Thrifty to $1.43bn (£930m) in cash and shares, in a bidding war with rival Avis.

Dollar Thrifty has accepted the $50-per-share offer.

A previous Hertz offer of $41 agreed in April was scuppered by Avis, who entered the fray with a $47 offer that was rejected by Dollar Thrifty's board.

Hertz operates in more sites than any other car hire firm, and the deal would increase its presence by another third.

The move would help Hertz increase its share of the tourist rental market.

Dollar Thrifty earned revenues of $1.55bn in 2009, mainly from tourists, whereas Hertz made half of its $7.1bn from business clients.

The US target company has favoured Hertz's approach in part because it has promised to pay a $45m break-up fee if the deal fails - something that Avis would not match.

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