Since last two year, there was an on-off takeover battle going on between the No. 2 ranked U. S. car rental company Hertz Global Holdings and No. 3 ranked Avis for buying Dollar Thrifty. But a number of disagreements over price and confusions in regard of the regulatory approval were creating hindrance in finalizing the deal.

Finally, bringing an end to this battle, Hertz Global has decided to buy this smaller rival Dollar Thrifty Automotive Group for about $2.3 billion. In other words, it will pay $87.50 per share in cash, which means a premium of 8% over the closing price, $81, of Dollar Thrifty on Friday at the New York Stock Exchange.

In April 2010, Hertz made the first offer for buying this automotive group of around $1.2 billion. In this tenure of almost 2.5 years, it made such a big jump. The final price offered by the company is quite higher than its initial offering.

In short span of time, Dollar Thrifty has strengthened with a much faster pace and has sooner become the final big target of its industry. This month, it finally urged Hertz to finalize the deal by making a persuasive bid otherwise it would look out for some other beneficial prospects.