Avis, to combine budget brands in $1B deal

DETROIT - car rental company Avis Budget Group Inc. Tuesday said it takes Avis Europe in a $1 billion, increase the possibility, the Avis Budget of a bidding war for U.S. rival dollar thrifty can secure.

The move combines Avis Europe, in the 1980s by Avis separately, combined the Avis Budget brands around the world and created, which said the company is the largest publicly traded car rental business in the world.

Avis Budget has dollar Thrifty Automotive Group Inc. with his rival, Hertz buy more than a year in a tug of war, and the European acquisition is an indication, the Avis Budget from the persecution moves.

Major retailers like Wal-Mart are thinking the country's most prominent retail giant, target and Wal-Mart small, smaller versions of their familiar mega stores test. Life Inc.: Beloved you your family enough, to work more? Many see in difficult times, night shift in a new Licht life Inc.: fathers have also occupation issues

In a statement the deal announcement said Avis Budget it has progress with the U.S. anti-trust regulators in discussions over the dollar thrifty acquisition, but would be the European business of the company's priority.

"While Avis Budget the dollar thrifty situation monitor still is, the focus of the company are square on the completion and integration of the substantial acquisition of Avis Europe," the statement said.

In a conference call Tuesday morning would acquisition issues, Avis Budget CEO and President Ron Nelson, not about the status of the dollar thrifty. "I think that we all have said, that we go say about dollar thrifty," he said.

$7.13 Or 8.9 per cent to $72.74 in pre-market trade shares of Dollar Thrifty fell Tuesday. Avis Budget shares rose 21 cents to $16.17 over the market open.

On Monday recommended Dollar Thrifty Board, its shareholders not their shares in Hertz's proposed $2.25 billion acquisition announced.

Dollar Thrifty agreed last month with Hertz Global Holdings Inc. the antitrust cooperation space for the offer that Hertz contains $57.60 in bar and 0.8546 shares of common stock. But Monday's Dollar Thrifty said, it was advice that shareholders hold you to any action.

Hertz has in the competition was with Avis Budget, whose Overture contains $45.79 per share in cash and 0.6543 shares of Avis, has for antitrust approval wait glued. This proposal is priced for Avis shares amounting to $1.77 billion on Friday.

Dollar Thrifty asked to make Avis, so that the two companies could work together with competition authorities in October not to a formal offer. Avis agreed to wait.

Hertz and Avis are budget for dollar thrifty, as its clientele largely is pleasure. Park Ridge, n.j.-based Hertz and Avis provide especially business travellers, so that they would be the acquisition of further appeal.

Chase is a sign of the times for dollar Thrifty Automotive rental, as the sector for many years were consolidation has. In 2002, Avis bought parent company budget, during the company's parent company of Alamo and national 2007 applied.

In the European acquisition, Parsippany, NJ-based Avis Budget, pays $5.16 per share or 315 pence for Avis Europe, based in Bracknell, England.

The bid is a 60-percent premium over the closing share price on Monday. Rose 58 percent Avis Europe shares as a result on the London Stock Exchange 310.3 pence to.

Avis Budget and Avis Europe said in the statement that they will have combined sales of about $7 billion and operations in over 150 countries. The companies expect for more than $ 30 million per year cut through the combination of operations.

Avis Europe works in 112 countries, including a joint venture, founded in 2002, with Shanghai Automotive Industry Sales Corp. Since 2003, it has held the rights to use the budget brand in Africa, the Middle East and Europe.

Avis Europe 1986 was legally separated from Avis and was on the London Stock Exchange, while the other under the brand Avis floated. It was then again in 1989, 1992 of GE Capital services purchased and sponge again private on the London Stock Exchange in 1997.

Nelson said that his company's business would be a greater presence in car rental markets in India and China.

"This transaction is to have an excellent opportunity for Avis, budget, and the acquisition of a company, we long," said Nelson.

The deal is approved by Avis Europe shareholders.

Copyright 2011, the associated press. All rights reserved. This material may not be published, broadcast, rewritten or distributed.