The bidding battle is hotting up for low-cost US rental chain Dollar Thrifty.
Avis has raised its offer to the equivalent of 1.13 billion euros in cash and stock.
That is about five percent higher than a bid from Hertz, which Dollar Thrifty’s board has accepted and which shareholders are due to vote on next week.
Avis said: “We continue to believe in the merits of an Avis Budget-Dollar Thrifty transaction, and we are therefore increasing the cash portion of our offer from $40.75 to $45.79 per share.”
A statement from Avis also said it could raise its offer further: “We believe that the increased value is warranted based on improving fundamentals in the industry and at Dollar Thrifty in particular.”
Any takeover will need competition authority approval.