Board's Contradictory Strategy Erodes Shareholder Value;
Threatens Merger Options
WASHINGTON, Aug. 1, 2011 /PRNewswire-USNewswire/ -- In
a July 11, 2011 letter to the Dollar
Thrift Group (NYSE: DTG) Board of Directors, International
Brotherhood of Teamsters General Secretary-Treasurer C. Thomas Keegel called on the company to redeem
its poison pill and follow a sound strategy to maximize shareholder
value and advance the interests of the company and its
stakeholders.
(Logo: http://photos.prnewswire.com/prnh/20100127/IBTLOGO)
Dollar Thrifty investors lost out last year when a bidding war
by rival companies Hertz and Avis was thwarted by an incoherent
board strategy. A recommended offer by Hertz was rejected by
shareholders after the board refused to seriously consider a higher
price from Avis. Hertz walked away, and Avis began to work with
Dollar Thrifty on antitrust review without any formal offer on the
table.
Then, less than a year later, Hertz returned with a higher
offer. This offer was immediately rebuked by the board, which
implemented a poison pill provision less than a week after the
offer. At the same time, the board announced it would cooperate
with Hertz in its anti-trust review. These conflicting actions
confused not only investors but Avis, which abandoned its takeover
efforts in favor of acquiring its European operation. The share
price, which had risen on hopes of a higher offer from Avis and a
potential bidding war, fell to the level of the Hertz offer and has
remained there ever since.
"How can Dollar Thrifty investors or employees have confidence
in this board when they can't seem to figure out which way is up?"
Keegel said. "The Teamsters urge the board to immediately redeem
the poison pill and begin negotiations with Hertz for a friendly
offer. Teamsters understand that you will not get the deal you want
without negotiating for it."
Founded in 1903, the International Brotherhood of Teamsters
represents 1.4 million hardworking men and women in the U.S.,
Canada and Puerto Rico including 11,000 workers in the
rental car industry.
SOURCE International Brotherhood of Teamsters