Here’s Why Car Rental Stocks are Soaring Now
Although Oil (NYSE:USO) is back near the century mark, executives in the car rental business are making big moves on the chessboard. Hertz Global Holdings, Inc. (NYSE:HTZ) is offering almost $2.1 billion for discount car rental company Dollar Thrifty Automotive Group (NYSE:DTG) as an alternative to Avis Budget’s (NYSE:CAR) $1.6 billion bid.
Avis Budget’s deal has stalled as the company cannot seem to navigate the Federal Trade Commission antitrust landscape. The delay has been a blessing for Hertz after an initial offer was rejected by Dollar Thrifty (NYSE:DTG) shareholders.
Buyout speculators are placing bets on the relatively small number of publicly traded car rental companies. Shares of Dollar Thrifty Automotive Group (NYSE:DTG) are up over 12%, Hertz Global Holdings, Inc. (NYSE:HTZ) is up 0.8%, Avis Budget (NYSE:CAR) is up 0.15%, and Zipcar (NASDAQ:ZIP) is up over 5%.
Don’t Miss Wall St. Cheat Sheet’s earnings coverage of the rental car sector: