Competition continues between Hertz and Avis over Dollar Thrifty merger

The debate between Hertz and Avis over a Dollar Thrifty merger rages on, even as Dollar Thrifty shareholders are scheduled to vote on the measure.

Earlier this year, Hertz won a bidding war against Avis to secure a merger deal with Dollar Thrifty. Now, it's up to the Tulsa, Oklahoma-based Dollar Thrifty's shareholders to decide if the $1.46 billion offer is good enough.

Refusing to give up its interest in the discount rental car company, Avis has offered Dollar Thrifty $20 million if its planned merger with Hertz doesn't go through. After months of declining to add such a proposition, Avis changed its mind after Hertz announced that it would immediately terminate the deal with Dollar Thrifty if its shareholders voted against the merger.

Hertz, which is based in Park Ridge, New Jersey, has said the most recent bid is its "best and final" offer.

"We arrived at our best and final $50 [per share] offer through an open, thoughtful and competitive negotiation and we cannot be held hostage in an open-ended process," said Hertz's chairman and CEO, Mark P. Frissora. "We are confident of a stand-alone strategy, accelerating the growth of Advantage and building on 4 straight quarters of U.S. airport revenue growth which significantly outpaces our publicly traded competitors."