As analysts wait to see what the next move will be in the battle for Dollar Thrifty, many think that it is highly unlikely that another bidder will put cash on the table. Currently, Hertz has made its offer for the group and is waiting to see if Avis can come up with something better.
There is the slim possibility that Enterprise might step in, but with its already dominant share of the rental market, it is unlikely that it would gain anti-trust approval for such a move. Neil Abrams of Abrams Consulting Group said that another unlikely scenario would be for one of the larger European companies, such as Sixt or Europcar, to step in with a bid.
Abrams added that he did not think anyone wanted to get into a bidding war with Avis and Hertz at the moment. He went on to say that they were likely to be the only two at the party unless there was a dramatic change of circumstances.
Hertz has already offered $940 million for Dollar Thrifty, and is viewed by many as the frontrunner in the race. Fund manager of Touchstone Mid Cap Value Fund, Peter Zuger, thinks that Hertz has done the clever thing by going in with a low bid and waiting to see what Avis can do. Hertz will then have to opportunity to reassess the situation and put in a higher counter offer.
It is believed that where Hertz is offering 80 per cent cash and 20 per cent stock for Dollar Thrifty, Avis may make a predominantly stock offer. This could cause problems as the value of Avis stock has dropped by 27 per cent since it announced its intentions of putting in a bid for Dollar Thrifty.