DOW JONES NEWSWIRES Avis Budget Group Inc. (CAR) said it would agree to pay a $20 million reverse-termination fee in a merger agreement with Dollar Thrifty Automotive Group Inc. (DTG) if that car-rental company's shareholders don't approve a $1.53 billion deal with Hertz Global Holdings Inc. (HTZ) at a meeting Thursday morning in Chicago. Dollar Thrifty has repeatedly backed its signed deal with Hertz over richer overtures from Avis, citing Avis's unwillingness to match Hertz in including a $44.6 million break-up fee payable to Dollar Thrifty in the event an Avis deal were to fall apart due to antitrust concerns. Avis previously refused to pay such a fee if Hertz had matching rights, saying antitrust concerns were no greater with it than with Hertz. Hertz said Wednesday that if Dollar Thrifty's shareholders turn down the deal, it will end its takeover efforts. Avis said with that statement, "Hertz has in effect eliminated those matching rights" so it would be willing to pay the fee. Hertz's cash-and-stock offer values Dollar Thrifty at $50.99 a share, nearly triple its 52-week low, but is below the $53.33 value offered by the competing cash-and-stock proposal from Avis. Hertz, the second-largest car-rental company in the U.S. in terms of revenue behind closely held Enterprise Holdings, has been eying fourth-largest player Dollar Thrifty for years, as has third-largest Avis. Avis's shares fell 1% to $11.41 in after-hours trading, while Hertz's rose 2 cents to $11.63 and Dollar Thrifty's were unchanged at $50.10. -By Kathy Shwiff, Dow Jones Newswires; 212-416-2357; kathy.shwiff@dowjones.com
