Avis requires more funding for Dollar purchase

Avis Budget Group’s top executive has stated that the company will require more money if it is to complete its takeover of Dollar Thrifty.

Speaking to in a conference call regarding a deal that will change the world of car hire, Avis CEO Ronald Nelson informed fellow members of the board that the company’s quarterly performance had not received any indication from US officials that approval of the proposed take over of its rival will be granted, while also pointing out that both Avis and Dollar had sent the Federal Trade Commission millions of pages’ worth of documents and data thus far.

Avis’ original interest in Dollar Thrifty began when it became evident just how much the company was able to thrive during times of economic hardship by offering the cheapest car rentals on the market. Initially, Dollar had only been interested in being taken over by Hertz, as Avis has antitrust issues and already puts out a rival brand that offers budget hire.

After shareholders decided against accepting Hertz’s deal however, Dollar then agreed listen to Avis, on the grounds that the latter company sorts out antitrust clearances before any type of agreement on the merger can be reached.

In midweek, Avis posted higher quarterly profits than it has been able to do recently as the recovering global economy boosted travel demand while many people were again left with enough disposable income to take holidays again and rent vehicles for exploring the destinations they visited. Despite this however, it appears that the company, which is much bigger than Dollar, will need more funding to take full control of its rival.

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