Report: Hertz Begins Direct Exchange Offer for Dollar Thrifty

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Hertz Global Holdings Inc. (HTZ) said Monday that it would begin its direct exchange offer this week for its smaller competitor Dollar Thrifty Automotive Group, (DTG), according to reports.

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"The exchange offer is not completed until their Board approves; launching the offer is a formality," a Hertz spokesman told Reuters,reaffirming the company's intent to keep its offer friendly.

Hertz, which walked away from a deal with Dollar Thrifty in September after its offer was rejected the company’s shareholders, renewed its offer to acquire the company for $2.08 billion earlier this month. Competing bidder, Avis Budget Group Inc., (CAR) has failed to get anti-trust approval from the Federal Trade Commission.

The FTC’s delay in coming to a decision on the matter comes as a result of consolidation within the car rental market, with only four major competitors at work in the U.S. An acquisition of Dollar Thrifty would only leave three dominant players in the market.

Shares of Hertz fell 19 cents or 1.19% on Monday, closing the day at $15.83 a share. Dollar Thrifty shares slipped 63 cents, nearly 1% to finish the session at $80.27, while Avis saw its stock fall 49 cents or 2.83% on Monday to close at $16.81.