Avis Gives Dollar Thrifty the Finger
Auto-rental company Avis Budget Group Inc. (NYSE:CAR) said it will no longer pursue its $1.55 billion bid to acquire rival Dollar Thrifty Automotive Group Inc. (NYSE:DTG). The move leaves Hertz Global Holdings Inc. (NYSE:HTZ) as the only remaining suitor. Hertz (NYSE:HTZ) already bought privately-held Donlen Corp. for $250 million and assumed the company’s $680 million in debt in July, so the company may not be ready to deal with Avis.
Shares rose over 5% to $12.40 a share at a P/E ratio of about 13 which is inline with industry rivals. The company also trades at a sales multiple of 0.2 which is significantly lower than its industry rivals. On the technical front shares trade well below their declining 50 day and declining 200 day moving averages. The MACD is bullish while RSI is pointing up at 47.