Hertz may exit equipment rental
Hertz is considering the sale of its Equipment rental division among other options following moves by some activist investors and unusual and substantial trading activity in its shares.
The company has retained Bank of America Merrill Lynch and Barclays to “advise on improving shareholder returns” and to help defend itself against an attack by activists though the adoption of a Poison Pill strategy to block hostile investors from accumulating more than a 10 percent holding in the company.
The company said that it has held talks with a number of major shareholders and “welcomes their input towards the goal of enhancing shareholder value”. It also said the plan would allow it to continue with a strategy that included “the evaluation of potential changes to the company’s operating structure and capital allocation”.
Equipment rental made up $1.14 billion of the company’s $8.2billion of revenue in the first nine months of this year and $170 million of its $1.3bn pre-tax profits - see: 69% profit jump at Hertz