Dollar Thrifty Automotive Group, Inc. Under Investigation for DTG Shareholders

If you are currently an investor in shares of Dollar Thrifty Automotive Group, Inc. (NYSE:DTG), and purchased the shares before April 26, 2010, and / or have additional information relating to the investigation, you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Dollar Thrifty Automotive Group
Affected Securities: 
NYSE: DTG

Just hours after the announcement an investigation on behalf of current investors of Dollar Thrifty Automotive Group, Inc. (NYSE:DTG), who purchased the DTG shares before April 26, 2010, over potential breaches of fiduciary duty and other violations of state law in connection with an alleged unfair takeover price and practice was announced.

The investigation by a law firm focus on potential breaches of fiduciary duty and other violations of state law by the Board of Directors of Dollar Thrifty Automotive Group, Inc. arising out of their attempt to Dollar Thrifty Automotive Group, Inc. (NYSE:DTG) to Hertz Global Holdings, Inc. (NYSE: HTZ).

Dollar Thrifty Automotive Group, Inc., located in Tulsa, OK, is engaged in the business of the daily rental of vehicles to business and leisure customers through company-owned stores. Dollar Thrifty Automotive Group, Inc. reported in 2007 Total Revenue of $1.76079billion, in 2008 $1.69799billion, and in 2009 $1.54625billion.

On April 26, 2010 Dollar Thrifty Automotive Group (NYSE: DTG and Hertz Global Holdings, Inc. (NYSE: HTZ) announced that they signed a definitive agreement providing for Hertz Global Holdings to acquire Dollar Thrifty Automotive Group for a purchase price of $41.00 per share, in a mix of cash and Hertz Global Holdings common stock (HTZ), based on Friday's closing stock price. Under the terms of the definitive agreement, the $41.00 per share purchase price is comprised of 80% cash consideration and 20% stock consideration. According to Dollar Thrifty Automotive Group the offer represents approximately a 19% premium to the 30-day average closing price of Dollar Thrifty's common stock.

Shares of Dollar Thrifty Automotive Group, Inc. (DTG) traded after the takeover announcement at $42.55 per share, and at about $39.25 per share the trading days before the news. DTG shares reached over $52 per share in 2007. At least one analyst has set a price target for Dollar Thrifty stock at $44.00 per share.

According to an investigation by a law firm the transaction appears to be unfair to current investors of Dollar Thrifty Automotive Group, Inc. (Public, NYSE:DTG) because the “offer to purchase Dollar Thrifty Automotive Group, Inc. (NYSE:DTG) appears grossly unfair, inadequate, and substantially below the fair or inherent value of DTG”. The investigation in particular also concerns “concerns whether the Dollar Thrifty Automotive Group Board of Directors breached their fiduciary duties to Dollar Thrifty Automotive Group, Inc. (DTG) stockholders by failing to adequately shop the Company prior to entering into the agreement, whether the Board of Directors breached their fiduciary duties by not seeking a deal that would provide better value of Dollar Thrifty Automotive Group, Inc. (NYSE:DTG), and whether Hertz Global Holdings, Inc is underpaying for Dollar Thrifty Automotive Group, Inc. thus unlawfully harming Dollar Thrifty Automotive Group, Inc. (DTG) stockholders.”