Tuesday, April 27, 2010

Hertz Buying Dollar Thrifty for 20x Last Year's Price

Hertz Global Holdings Inc. said Monday it has agreed to buy rival Dollar Thrifty Automotive Group for about $1.17 billion in cash and stock as it tries to expand its vacationer business. Hertz said its bid values Dollar Thrifty, based in Tulsa, Okla., at $41 per share, a 5.5 percent premium to Friday's closing price of $38.85. The offer is made up of 80 percent cash and 20 percent Hertz stock.

A year ago, DTG was trading at $2 a share. Now Hertz is paying $41. Brilliant.

Disclosure: No position in either - just a sign of the times.

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