NEW YORK, April 26, 2010 (GLOBE NEWSWIRE) -- Levi & Korsinsky is investigating the Board of Directors of Dollar Thrifty Automotive Group Inc. ("Dollar Thrifty" or the "Company") (NYSE:DTG) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Hertz Global Holdings, Inc. ("Hertz") (NYSE:HTZ). Under the terms of the transaction, Dollar Thrifty will first pay out to Dollar Thrifty shareholders a $200 million special cash dividend, worth about $6.88 a share. Upon closing of the transaction, Dollar Thrifty shareholders will receive $25.92 in cash and 0.6366 shares of Hertz stock for each Dollar Thrifty share they own. In total, the transaction values Dollar Thrifty stock at approximately $41.00 per share, based on the prior day closing price of Hertz stock of $12.88 per share, for a total transaction value of approximately $1.2 billion.
The investigation concerns whether the Dollar Thrifty Board of Directors breached their fiduciary duties to Dollar Thrifty stockholders by failing to adequately shop the Company before entering into this transaction and whether Hertz is underpaying for Dollar Thrifty shares, thus unlawfully harming Dollar Thrifty stockholders. In particular, the offer price is only a 5.5% premium over the prior day closing price of Dollar Thrifty stock of $38.85 per share and at least one analyst has set a price target for Dollar Thrifty stock at $44.00 per share.
If you own common stock in Dollar Thrifty and wish to obtain additional information, please contact Joseph E. Levi, Esq. either via email at jlevi@zlk.com or by telephone at (212) 363-7500 or visit http://www.zlk.com/dollar-thrifty-automotive.html.
Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.