I haven't posted in quite a while - but I think this is very important. I am SO glad the leaders of our city are standing up today to encourage stockholders of Dollar/Thrifty to NOT take the deal that Hertz is offering. The only people who will benefit from this are the higher-ups. I know one person (who shall remain nameless - ST are his initials) reportedly will get a 20 million dollar golden parachute if the sale goes through. Other top dogs get similiar amounts. These are the ones pushing for the sale. This is NOT a merge, as some have suggested, it is a takeover. MANY local jobs, some with great salaries, will be lost. Even the experts are encouraging stockholders not to accept the deal. $41 per share for a stock that is trading for about $48. What is the incentive? Big-wigs get Powerball-like payouts, while hard working Tulsans get pink slips. Nice. Wall Street greed right here in Tulsa.
Thank you, Mayor and Metro Chamber folks for at least taking a stand on this. This sale, if it goes through will destroy families and hurt our local economy much more than people realize.
Local Report
http://www.newson6.com/global/story.asp?s=13116534
Bloomberg says NO
http://www.bloomberg.com/news/2010-09-07/dollar-thrifty-should-reject-hertz-riskmetrics-says.html
What was DTAG trading at before the rumors started flying about a takeover bid?
$42.00
Avis seems to be the best bet for keeping the majority of jobs in Tulsa, especially considering they already have operations here. I am hoping Dollar Thrifty remains a wholly-owned subsidiary and keeps most of its management operations at 31st & Yale.
I'm really hoping that neither sale goes through, but if it does happen - that they will entertain Avis' higher bid. The only reason their first offer was rejected is because Avis doesn't want to guarantee the "breakup fee" if the government doesn't approve the buy. Hertz has agreed to a breakup fee - I think it's in the ballpark of $40M. When Avis offers almost $300M more, why in the world would they not agree to $40M or so in case the deal goes south?
Hertz will "eat up" DTAG. Jobs will not only be lost here - but also in the 600 or so airport locations that DTAG has across the country. All the local vendors that support DTAG will also be affected.
Please go away, Hertz.
Quote from: restored2x on September 08, 2010, 10:17:14 AM
I'm really hoping that neither sale goes through, but if it does happen - that they will entertain Avis' higher bid. The only reason their first offer was rejected is because Avis doesn't want to guarantee the "breakup fee" if the government doesn't approve the buy. Hertz has agreed to a breakup fee - I think it's in the ballpark of $40M. When Avis offers almost $300M more, why in the world would they not agree to $40M or so in case the deal goes south?
Hertz will "eat up" DTAG. Jobs will not only be lost here - but also in the 600 or so airport locations that DTAG has across the country. All the local vendors that support DTAG will also be affected.
Please go away, Hertz.
What is the likelihood of DTAG remaining its own entity? It's still profitable with a good stock price, why would they want to merge with another company that could drag it down? Would it not be better for shareholders/management to keep DTAG intact? That would be in the best interest of Tulsa as well.
Makes perfect sense to me. Why become that successful, then sell out for less than market value? I don't think the stockholders will go for this. At least I hope not.
Now the board of DTAG has accepted a new offer of $50 per share. Sounds fair if you're a stockholder. This is terrible for Tulsa. Many do not understand how the absence of DTAG will affect our local economy.
DTAG donates approximately $1M a year to local charities via the United Way - that will be gone. Where will our local charities replace those much-needed funds?
According to a news report last week, the takeover will cost Tulsa around $10M in tax revenue. Our city budget is already a mess - after this deal goes through, where will we get that $10M? Maybe more police and Fireman layoffs. Turn off the street lights. Don't fix the potholes or cut the grass. This "sale" affects Tulsa in a very negative way.
The "domino effect" will be devastating - foreclosed homes. Taxpayers moving out of state to replace these jobs. Unemployment percentage in Tulsa will go up dramatically. Not only because of those 600 jobs, but because this local company uses local vendors HP/EDS, catering, office supplies, etc. etc. etc. Where will they replace that revenue? They will have to cut back as well. Others will lose their jobs as well.
It may be inevitable - but that doesn't mean we have to sit down and take it without a fight.
What can be done?
I call on the Chamber of Commerce to take up this fight and make it very public. Chamber, ask the Tulsa World to donate a full page and publish an open letter both to educate our community on the impact this will have on us all, and the fact that this is an example of Wall Street greed on 41st St.
Call on local corporations to boycott Hertz as a show of support for the Tulsa economy. They make most of their money on corporate rentals.
Try to make this national news. Speak up. Encourage a national boycott. We are the victims - they are the Wall Street bad guys.
Tulsans - go to DTAG's corporate website and find the email addresses of those in charge of DTAG and write them an email expressing how this move will affect all Tulsans. Do the same with their Board Members. Do the same with the big-wigs at Hertz.
If we refuse to speak up, we will never be heard. They may go through with the "sale" anyway. But they are the bully - we are the small town. We may as well get in one good punch and not sit down in a corner and just take it without a fight.
It will be interesting to see if Avis makes a counter offer. When is the shareholder vote, this Thursday? Any impact to Tulsa is speculation at this point. Hertz may decide to keep a large percentage of its workforce here.
I hope Avis does counter-offer. The shareholders meeting/vote is now on Sept. 30. According to my sources, everything will be absorbed into OKC. Any presence here would be so small scale it would be negligible.
Quote from: restored2x on September 13, 2010, 08:50:40 AM
I hope Avis does counter-offer. The shareholders meeting/vote is now on Sept. 30. According to my sources, everything will be absorbed into OKC. Any presence here would be so small scale it would be negligible.
As do I. If Hertz wins out, with the amount of space they have at 31st & Yale why wouldn't they just move their OKC operations to Tulsa? There should be a stipulation that whoever ends up buying DTAG has to maintain a sizable Tulsa presence. They already have the office space, and costs here are low. Is the city prepared to offer any incentives?
SXSW, I believe OKC is the Hertz data and reservation center. They wouldn't move it to Tulsa in a million years with millions in tax credits. A lot of data equipment and a lot of specially designed HVAC equipment and environmental systems. Part of the payback for buyouts like this is paid for via thinning the herd once the deal is complete.
This is unfortunate for Tulsa. I wish DTAG would simply be happy with staying an independent company instead of being absorbed into something bigger and further limiting choices for the consumer.
Dig this - the stockholder's meeting, for the first time in the history of the company, will take place, not here at Tulsa DTAG Headquarters, but in Chicago. I think they realize a groundswell of anger and disappointment will meet them if they have it here. Cowards.
Sounds like they are already distancing themselves from the Tulsa community. The decision to screw Tulsa's economy and their own employees (who are the ones that made them so successful in the first place) won't take place here, where they can be held accountable to the community that supported them and needs them now.
If I didn't have a day-job, I'd be the nut-job standing in front of their buildings with giant signs. I'd rent a spot on the giant LCD billboard behind their property on the BAX with a giant arrow pointing towards them - and the caption: Hey DTAG! Thanks for abandoning Tulsa!
Also - this is a BIG local story. I sure wish it would get more coverage BEFORE it all goes down. Even if neither Hertz nor DTAG people comment - the local media could make Tulsans aware of the damage this will do. Too bad it's not a cold front or a storm - they spend an awful lot of airtime informing us "It's raining in Kansas!".
Media friends: Investigate, ask the hard questions, serve your community.
I understand some questions cannot be answered because of legal concerns, but we haven't even gotten a sound byte. All we've gotten is silence. Maybe someone is not asking the right questions.
I did see it covered on local tv. They haven't really followed up though. Perhaps they don't want to be seen as being negative or maybe they just don't understand the ramifications. Heck, they don't seem to understand much.
went to BOK today over there, lots of tents up, music food lots of local vendors doing something out there at the HQ..looks like alot of money that wouldn't be spent here when they move.
The shareholders and feds still have to approve the Hertz merger, and that is not a done deal. Plus there is still the possibility of an Avis counter-offer or the company remaining independent.
Tulsa survived when Citgo left and will survive if DTAG leaves too. Our status as a rental car industry center will forever be lost though, with Vanguard getting bought by Enterprise a few years ago.
Quote from: SXSW on September 13, 2010, 11:07:33 AM
The shareholders and feds still have to approve the Hertz merger, and that is not a done deal. Plus there is still the possibility of an Avis counter-offer or the company remaining independent.
Tulsa survived when Citgo left and will survive if DTAG leaves too. Our status as a rental car industry center will forever be lost though, with Vanguard getting bought by Enterprise a few years ago.
As I recall, Citgo had whittled down to about a 100 person workforce in Tulsa before the last of their troops were withdrawn to Houston and I believe all of those people were offered the same job in Houston. A friend of mine was one of the transferees. People who stayed generally had something else to go to and companies like SEM were ramping up employment and were able to absorb them.
Pretty much the same thing which happened with Texaco and Amoco, they had siphoned off silently for some time then pulled out the last 100 to 200 employees with little fanfare.
A far bigger cataclysm was the failure of CFS. We can survive this but I'd really rather not see these jobs lost.
Quote from: Conan71 on September 13, 2010, 11:13:18 AM
As I recall, Citgo had whittled down to about a 100 person workforce in Tulsa before the last of their troops were withdrawn to Houston and I believe all of those people were offered the same job in Houston. A friend of mine was one of the transferees. People who stayed generally had something else to go to and companies like SEM were ramping up employment and were able to absorb them.
Pretty much the same thing which happened with Texaco and Amoco, they had siphoned off silently for some time then pulled out the last 100 to 200 employees with little fanfare.
A far bigger cataclysm was the failure of CFS. We can survive this but I'd really rather not see these jobs lost.
Most definitely. Though I dispute the 700 jobs number that the media keeps using. From what I've heard it's much lower than that and many of the floors in their building are empty. Either way it's another HQ lost and that is not good for the city. The good news is there are several smaller local companies like Magellan Midstream, RAM Energy, Xeta Technologies, etc. that are growing which helps offset any loss from DTAG which, at least for the past few years, has been unstable and just two years ago was practically bankrupt. The turnaround has been nothing short of amazing. Hopefully shareholders acknowledge that.
Quote from: zstyles on September 13, 2010, 11:05:27 AM
went to BOK today over there, lots of tents up, music food lots of local vendors doing something out there at the HQ..looks like alot of money that wouldn't be spent here when they move.
Yeah, they are having some kind of employee "tailgate" party, and I think more fundraising for United Way. (Dunk Tanks, games, etc.) Interestingly enough, nobody there has even been told about the newest offer.
I understand that this city has continued to survive when large companies have left us. It appears to be the spirit of this city. My problem, I think is the fatalistic attitude and lack of fight. This forum is the essence of changing that attitude. We don't need to be known as a city that survives - we want to be a city that thrives. Having aan attitude that just says, "Shjyy Happens" and not making our passion and opinions known is, in my opinion, defeatest and discouraging.
I think it is inevitable that they leave. That being said, I think it is appropriate to strongly disagree and make our voice heard. This is a great opportunity to express how much we dig this city and want our businesses to stay.
Quote from: SXSW on September 13, 2010, 11:20:42 AM
Most definitely. Though I dispute the 700 jobs number that the media keeps using. From what I've heard it's much lower than that and many of the floors in their building are empty. Either way it's another HQ lost and that is not good for the city. The good news is there are several smaller local companies like Magellan Midstream, RAM Energy, Xeta Technologies, etc. that are growing which helps offset any loss from DTAG which, at least for the past few years, has been unstable and just two years ago was practically bankrupt. The turnaround has been nothing short of amazing. Hopefully shareholders acknowledge that.
The figure is closer to about 650, maybe 600.
I am thrilled that new businesses are thriving. Good to hear that good news. Just truly wish we could somehow keep DTAG here.
Quote from: restored2x on September 13, 2010, 12:58:56 PM
The figure is closer to about 650, maybe 600.
I am thrilled that new businesses are thriving. Good to hear that good news. Just truly wish we could somehow keep DTAG here.
They haven't announced they are leaving. No reason to worry about it yet. And I'm confident the Chamber is doing whatever they can to make sure the jobs stay in Tulsa. However that is the unfortunate thing about company mergers. The company that is being bought, and the city where they are headquartered, almost always loses out.
Obviously the best option is for DTAG to stay its own company, which is still a very real possibility. The second best option is for Avis to up its offer which would protect many of the jobs due to Avis' presence in Tulsa. Finally if Hertz does indeed win out they would still move upper management to NJ and probably many positions to their base in OKC but could maintain DTAG as a 'wholly-owned subsidiary' with offices and management in Tulsa.
Quote from: SXSW on September 13, 2010, 01:16:44 PM
They haven't announced they are leaving. No reason to worry about it yet. And I'm confident the Chamber is doing whatever they can to make sure the jobs stay in Tulsa. However that is the unfortunate thing about company mergers. The company that is being bought, and the city where they are headquartered, almost always loses out.
Obviously the best option is for DTAG to stay its own company, which is still a very real possibility. The second best option is for Avis to up its offer which would protect many of the jobs due to Avis' presence in Tulsa. Finally if Hertz does indeed win out they would still move upper management to NJ and probably many positions to their base in OKC but could maintain DTAG as a 'wholly-owned subsidiary' with offices and management in Tulsa.
Avis has expressed interest in moving their headquarters from Parsippany, NJ to here. Better incentives and lifestyle here, less expensive, etc. DTAG seems to be ignoring Avis. Their offer was rejected in 2 business days, if I recall correctly. My sources tell me this is probably 98% a done deal. Shareholders wanted more - so Hertz has offered more. The shareholders are not just individuals, but are in mutual funds, etc. as well. If the FTC says no (hope it does say no), then no more offers can be made.
SXSW:
Checked into the empty office thing. When the economy went south, they outsourced their reservation center. Those floors are now empty. However, at that time, their stocks were selling for less than a dollar. Because of those changes, the company has become a cash cow. Trading today at $50.47. Dollar shares have doubled this year, while Hertz has lost 10% of the value of their stock.
[/url]http://www.marketwatch.com/story/hertz-shares-rally-7-after-raised-bid-2010-09-13
DTAG still has a reservation center in Talequah.
Thanks so much for being involved in this thread.
According to KRMG, DTAG board approved it. On to the shareholders and regulators next.
"(Tulsa, Ok) -- The employment outlook for workers at Tulsa-based Dollar Thrifty Automotive Group is uncertain. The firm's board of directors has accepted a takeover bid from Hertz, totaling $1.4 billion. Jim Fram is Vice President for Economic Development with the Tulsa Metro Chamber of Commerce. He says if Hertz is successful in its' takeover bid of Dollar Thrifty, it would be grim news for Tulsa. Hertz's offer of $1.4 billion dollars trumps a $1.3 billion dollar cash and stock counteroffer by Avis Budget Group. Dollar Thrifty shareholders have until September 30th to consider Hertz's offer."
Great news for anyone who bought DTAG at fire sale prices a year and a half ago. I hate to see this, personally.
http://krmg.com/localnews/2010/09/hertz-outbids-avis-for-dollar.html
Point of personal disclosure: My mother went to work at DTAG in 2000, she was laid off in Oct. of 2001 amidst the recession and the disarray travel was thrown into from 9/11. They went through every department and cut people right away. She never held a grudge and appreciated that they could make hard decisions and stick to them instead of riding the company into the ground. She was in her mid-60's at the time and finally just decided to retire and take care of my grandmother who was in declining health at the time, there weren't many other opportunities for someone most people only expected to work a few years at most.
Quote from: restored2x on September 13, 2010, 09:31:26 AM
Media friends: Investigate, ask the hard questions, serve your community.
Tonight, our Action News squad investigates products that CLAIM to make your dog's coat shinier - do they stack up against their claims? PLUS - 7 ways your toddler could DIE in his bedroom. You can't AFFORD to miss Action News 10 at 9!
Quote from: YoungTulsan on September 13, 2010, 03:08:32 PM
Tonight, our Action News squad investigates products that CLAIM to make your dog's coat shinier - do they stack up against their claims? PLUS - 7 ways your toddler could DIE in his bedroom. You can't AFFORD to miss Action News 10 at 9!
HaHa! So frickin' true!
Quote from: restored2x on September 13, 2010, 01:39:29 PM
Avis has expressed interest in moving their headquarters from Parsippany, NJ to here. Better incentives and lifestyle here, less expensive, etc.
Hertz is also based in NJ. Are they not interested in moving as well? You already have an entire building plus a second building next door that could be used as a base of operations. There is no need for a rental car business to be close to NYC, which is about the only advantage a NJ headquarters gives you. However with their existing OKC office they could move there instead if they wanted out of Jersey. If it comes to it I'd rather see the jobs move down the turnpike then out of state.
**Hoping Avis makes a counter offer**
Quote from: SXSW on September 13, 2010, 03:58:12 PM
Hertz is also based in NJ. Are they not interested in moving as well? You already have an entire building plus a second building next door that could be used as a base of operations. There is no need for a rental car business to be close to NYC, which is about the only advantage a NJ headquarters gives you. However with their existing OKC office they could move there instead if they wanted out of Jersey. If it comes to it I'd rather see the jobs move down the turnpike then out of state.
**Hoping Avis makes a counter offer**
Not going to happen, the board approved Hertz' offer at $50 a share.
Maybe they can spend their powerball payoffs in the Tulsa economy :P
Quote from: SXSW on September 13, 2010, 03:58:12 PM
Hertz is also based in NJ. Are they not interested in moving as well? You already have an entire building plus a second building next door that could be used as a base of operations. There is no need for a rental car business to be close to NYC, which is about the only advantage a NJ headquarters gives you. However with their existing OKC office they could move there instead if they wanted out of Jersey. If it comes to it I'd rather see the jobs move down the turnpike then out of state.
**Hoping Avis makes a counter offer**
Hertz has no intentions of moving from NJ.
Also, YoungTulsan - even though the board approved the offer, anyone can make a counter-offer until the stockholders vote, even Donald Trump, or Mr. Kaiser.
Quote from: restored2x on September 13, 2010, 05:32:09 PM
Hertz has no intentions of moving from NJ.
Also, YoungTulsan - even though the board approved the offer, anyone can make a counter-offer until the stockholders vote, even Donald Trump, or Mr. Kaiser.
Technically anyone can make a counteroffer AFTER the stockholders vote too, so long as they vote no.
sgrizzle - from your mouth to God's ears.
Avis just made another bid.
http://finance.yahoo.com/news/Avis-Budget-Increases-Its-prnews-2519691304.html?x=0&.v=1
Hertz stock is fascinating and also very scary, not sure why management at DTG is even letting them court, they obv. don't care about the company which is clear. Hertz is controlled by private equity but considered a public company. Last year they diluted the outstanding shares with a secondary and convertible offering at 6.78/share and the stock went up over 100%. They issued 400mil Euro of new debt last week. They are issuing 300mil more debt now. As of the latest 10Q they have an imbalance in AP/AR of $1,200,000,000.
That is they owe creditors over a billion bucks more than they have in current receivables. This imbalance has escalated in the past 6 months. They have 2.7 billion in goodwill. They are under review for downgrade to spec.
Over 2 billion in debt is over 10% interest.
Once the deal is finalized they will have 800 mil in cash and will be in default by 400 mil if required to pay creditors on time. This will be very interesting to watch over the next few months.
Avis may have just won, Hertz won't raise to match Avis' latest offer:
http://www.bloomberg.com/news/2010-09-24/hertz-says-1-44-billion-dollar-thrifty-offer-is-its-best-and-final-bid.html
Quote from: zstyles on September 23, 2010, 02:36:47 PM
Hertz stock is fascinating and also very scary, not sure why management at DTG is even letting them court, they obv. don't care about the company which is clear. Hertz is controlled by private equity but considered a public company. Last year they diluted the outstanding shares with a secondary and convertible offering at 6.78/share and the stock went up over 100%. They issued 400mil Euro of new debt last week. They are issuing 300mil more debt now. As of the latest 10Q they have an imbalance in AP/AR of $1,200,000,000.
That is they owe creditors over a billion bucks more than they have in current receivables. This imbalance has escalated in the past 6 months. They have 2.7 billion in goodwill. They are under review for downgrade to spec.
Over 2 billion in debt is over 10% interest.
Once the deal is finalized they will have 800 mil in cash and will be in default by 400 mil if required to pay creditors on time. This will be very interesting to watch over the next few months.
None of the "higher-ups" at DTAG have roots in Tulsa. They are business men and women. Their personal incentive is to get that giant payoff and get out of dodge. This is just about a done deal. Unfortunate.
Quote from: swake on September 24, 2010, 10:53:54 AM
Avis may have just won, Hertz won't raise to match Avis' latest offer:
http://www.bloomberg.com/news/2010-09-24/hertz-says-1-44-billion-dollar-thrifty-offer-is-its-best-and-final-bid.html
AVIS is confusing. They offer more money - but refuse to offer the 44M "backup coverage" if the FTC says no-go. Makes no sense. Sources tell me that the Board isn't even looking at AVIS' offer. They seem to be in love with the Hertz takeover. The whole merge/takeover (if approved) should last about 2 years, with people losing their jobs little-by-little.
AVIS is at a disadvantage because they are really AVIS/Budget and DTAG is Dollar/Thrifty. Hertz is selling its Advantage sites - so as to clear the way for FTC approval. AVIS has Budget, which is leisure/economy - so the FTC may not be as inclined to approve.
So if Hertz wins out what is the likelihood of any jobs remaining in Tulsa? Or do they all either go to New Jersey or OKC? It seems like the Dollar/Thrifty subsidiary would still have to be managed somewhere, why not Tulsa?
Quote from: SXSW on September 29, 2010, 10:55:57 AM
So if Hertz wins out what is the likelihood of any jobs remaining in Tulsa? Or do they all either go to New Jersey or OKC? It seems like the Dollar/Thrifty subsidiary would still have to be managed somewhere, why not Tulsa?
As I understand it, after the 2 years - there will be no presence in Tulsa (except an airport counter location). If anyone stays on because of lack of duplicity - they will have to move to NJ or OKC - wherever that job may be based. There will be two giant empty buildings on 31st St, though. Maybe they'll rent the office space out - who knows?
More News on DTAG purchase -
"(Reuters) - PAR Capital Management, one of Dollar Thrifty Group's (DTG.N) top shareholders, plans to vote against the car rental company's deal to be bought by Hertz Global Holdings Inc (HTZ.N), PAR's president told the Wall Street Journal on Tuesday.
PAR owns about 7.7 percent of Dollar Thrifty, the report said. (That's 2,191,800 no votes)
PAR's president Paul Reeder told the Journal that the Hertz bid "doesn't fully compensate us for the value of Dollar Thrifty as a going concern."
Shareholders are scheduled to vote on the Hertz bid on Thursday. Rival Avis Budget (CAR.N) also has a higher bid on the table, but Dollar has stood by the Hertz deal, citing worries about Avis' ability to get antitrust approval."
Small percentage of total shareholders - but by them publicizing it, it may sway other shareholders to vote no. *Fingers crossed*
Quote from: restored2x on September 29, 2010, 01:55:34 PM
As I understand it, after the 2 years - there will be no presence in Tulsa (except an airport counter location). If anyone stays on because of lack of duplicity - they will have to move to NJ or OKC - wherever that job may be based. There will be two giant empty buildings on 31st St, though. Maybe they'll rent the office space out - who knows?
Do they own the buildings on 31st St?
Quote from: SXSW on September 29, 2010, 03:41:43 PM
Do they own the buildings on 31st St?
Yes, the buildings are owned by DTAG.
Well, they vote today. AVIS upped the ante and asked them to put off the vote until December - looks like that won't happen, even though AVIS promised 20M in breakup fees now. Too little, too late.
Ticks me off how callous these execs can be. Greed is a nasty thing. Millions in yearly salaries is not enough - not when you can screw everyone and get a $10-20 Million dollar payoff. (30 pieces of silver) Betrayal, lies, misleading and vague information to the rank-and-file employees. Accepting a deal that will eliminate hundreds of jobs and tax revenue for the city. And, it is not even a good deal.
Proxy voters who decline to send in the form are counted as an automatic "NO" vote. PAR is voting NO. Most employees with stock are voting NO.
Interesting article -
Tulsa World
Insider overview: Dollar Thrifty Automotive Group
NYSE: DTG
By NANCY HOLLINGSHEAD World Staff Writer
Published: 9/27/2010 2:19 AM
Last Modified: 9/27/2010 3:57 AM
R. Scott Anderson, senior executive vice president-operations and global sales and marketing, on Wednesday exercised options for 25,800 shares at $19.38 with a market value of $499,875.
This is the first trade for Anderson this year, according to Thomson Reuters, and comes just as Dollar Thrifty shareholders prepare to vote Thursday on a takeover offer from Hertz Global Holdings Inc.
On Friday, Hertz says it was standing by its offer valuing Dollar Thrifty at $50.25 per share, or $1.45 billion. This was after Avis Budget Group Inc. bid $53 per share, or about $1.52 billion in cash and stock.
Also, Kimberly D. Paul, vice president and chief accounting officer, on Tuesday exercised options to buy 800 shares at $19.38 with a market value of $15,500.
Shares of DTG closed Friday at $51.03, down $1.31. They have traded at a low of $17.72, and a high of $53.00
Read more from this Tulsa World article at http://www.tulsaworld.com/business/article.aspx?subjectid=51&articleid=20100927_46_A13_RScott364007
Can someone convince me this is not "Insider Trading"?
Sounds like these execs have no loyalty to their employees or Tulsa. If they leave, good riddance.
If my math is correct (never was good at math) - he stands to make $815,796 - he paid 19.38 on 25,800 shares for an outlay of $500,004. If Hertz deal goes through, he gets $51.00 a share, the difference between $51.00 and $19.38 is $31.62. That times 25,800 equals $815,796 in pure profit.
Yeah, I guess I can see why he's pushing the deal. That doesn't include his $20 Million in golden parachute buyout money in the deal.
Even if the deal doesn't get approved, he's still made that money. Is this illegal?
EDIT: My bad - since it is an "option" it was free stock that was worth $19.38 when issued to him. Smart businessman. So, it is all pure profit.
Just got an answer on that deal - nobody has been told by legal that they couldn't trade - so I guess he's cool. I was questioning, not accusing.
Quote from: restored2x on September 30, 2010, 09:04:47 AM
Just got an answer on that deal - nobody has been told by legal that they couldn't trade - so I guess he's cool. I was questioning, not accusing.
Wow, just plain wow.
Every merger I have ever been through, and that's a lot of mergers, had a blackout period where employees could not buy or sell stock.
Quote from: swake on September 30, 2010, 09:16:08 AM
Wow, just plain wow.
Every merger I have ever been through, and that's a lot of mergers, had a blackout period where employees could not buy or sell stock.
That seems to be normal protocol. Don't know why the blackout period wasn't enforced.
If they own stock options, they can exercise whenever they want. That's the point of the option, which I assume they received at some point in lieu of cash compensation.
I don't see it as dirty. They don't know the next time DTAG will trade this high so they're cashing out.
They keep delaying the vote because of lots of last-minute proxy votes. Since AVIS sweetened its deal, I think many are changing their vote to "no". The announcement of the results has been delayed 3 hours. Meanwhile, DTAG stock is inching up and Hertz is inching down.
The Vote is in!!
Shareholders have voted...
NO!
Woot!
Quote from: sgrizzle on September 30, 2010, 02:14:41 PM
The Vote is in!!
Shareholders have voted...
NO!
http://www.bloomberg.com/news/2010-09-30/dollar-thrifty-shareholders-vote-against-hertz-offer.html
2 Million vote margin!!!!!
"Dollar Thrifty Chief Executive Officer Scott Thompson declined to comment after the meeting. "
Awww, I guess Scottie wanted to go pout about losing out on his $20mm golden parachute.
I appreciate what he did to turn the company around, but can't get past the way he tried to sell us down the road.
We owe a huge thanks to PAR as they own 2.19mm shares and their no vote sealed it.
Quote from: restored2x on September 30, 2010, 02:23:12 PM
http://www.bloomberg.com/news/2010-09-30/dollar-thrifty-shareholders-vote-against-hertz-offer.html
2 Million vote margin!!!!!
And in reading the article it looks like PAR Capital Management holding the largerst number of shares (2.19mil) was the decider in this. I see they felt the Hertz offer was not adeaquate. So does this completely open the door for Avis?
Okay now that Hertz is out of the picture (for now), how would a merger with Avis save jobs in Tulsa? Wouldn't the execs still move to NJ? And isn't the existing Avis office here just a call center?
Why is the Tulsa World saying "narrowly rejected"?
As mentioned earlier, AVIS has expressed an "inclination" to move from Parsippany, NJ to here. That would be great. As far as I know, all they have here now is a res center. When I worked there about 11 years ago, it also housed the Corporate Business Department. I worked in that department, loved it, but the pay was apalling - so I went to Sabre until they dissolved.
If AVIS does have that inclination, it would be an excellent time for the mayor and City Council to find some incentives for the possible relocation. NOW would be the time to move on this. AVIS played hardball on this and seems to be serious. FTC, FCC approval may be more difficult with AVIS, but the percentages are about the same. 70% corporate, 30% leisure (AVIS and Hertz) - so it may be a moot point. DTAG has no corporate travel - per se.
BTW - Hertz is not out of the picture. They are free to continue to bid, under Delaware corp law. If the approving government bodies turn either company down - then DTAG cannot be bought.
The drama will continue, I'm sure. But - we dodged a bullet today. Thanks, PAR!
Quote from: restored2x on September 30, 2010, 03:19:21 PM
BTW - Hertz is not out of the picture. They are free to continue to bid, under Delaware corp law. If the approving government bodies turn either company down - then DTAG cannot be bought.
The drama will continue, I'm sure. But - we dodged a bullet today. Thanks, PAR!
Hertz stated they would not re-up or change their offer. A vote "no" would mean they walk away.
Granted there is nothing legally binding them to that statement.
Quote from: sgrizzle on September 30, 2010, 04:15:48 PM
Hertz stated they would not re-up or change their offer. A vote "no" would mean they walk away.
Granted there is nothing legally binding them to that statement.
Kind of like a Brett Favre retirement announcement, eh?
Quote from: sgrizzle on September 30, 2010, 04:15:48 PM
Hertz stated they would not re-up or change their offer. A vote "no" would mean they walk away.
Granted there is nothing legally binding them to that statement.
Exactly. I think their statement was posturing.
It's tough talk (by Frissora). It's a powerful statement. If nobody steps up after the vote falls apart, your shares could fall to $25 to $30, and Hertz won't be there to pick up the pieces."
Frissora said that if Dollar Thrifty shareholders reject Hertz's offer, Hertz will immediately terminate the merger agreement negotiated April 25, "taking the $50 offer permanently off the table."
Hertz then will end all efforts to acquire Dollar Thrifty, halt the process of selling Advantage, its discount rental car brand, and withdraw its antitrust application from the Federal Trade Commission, he said.
We "arrived at our best and final $50 offer through an open, thoughtful and competitive negotiation, and we cannot be held hostage in an open-ended process," Frissora said.
"We are confident of a standalone strategy, accelerating the growth of Advantage and building on four straight quarters of U.S. airport revenue growth, which significantly outpaces our publicly traded competitors."
Read more from this Tulsa World article at http://www.tulsaworld.com/news/article.aspx?subjectid=54&articleid=20100930_54_E1_CUTLIN409586Let's see if they withdraw it's anti-trust application with the FTC - then we'll see if it was real or just poker face.