Avis Budget Drops Dollar Thrifty, Hertz Tracks Cleared
By Suman Chatterjee:As of December 2010, the Avis Budget Group (CAR), comprising of Avis and Budget, harbored over 345,000 rental vehicles and recorded around 22 million vehicle rental transactions worldwide. Ah! Avis Budget definitely is an established player in the vehicle rental industry. Then why did it surrender in the bidding race for Dollar Thrifty (DTG), in the 17-month bidding war with Hertz Global Holdings, Inc. (HTZ)? Well, the very first thing is that Dollar Thrift is even larger than Avis Budget Group, as per the market cap goes. But that's not the main reason why Avis Budget Group didn't go for Dollar Thrifty. According to Avis Budget Group, following are the reasons.
- Huge level of debt. It seems the total debt is already over $10.10 billion, and the current liabilities is already over $900 million. In fact, the debt due to Avis Budget Rental Car Funding (AESOP) LLC is almost $4