Take the Money!

No Vote From Dollar Thrifty ShareholderTake the Money!

Agreed, I know a little bit about the car rental business. My lesson here is take the money! I read where a top shareholder of Dollar Thrifty is going to vote against the merger deal with Hertz. I am sure that the shareholder has spent the time to talk to management? Maybe not. And under certain rules it may be impossible to get to all of the core facts. But the shareholder has made his/her choice.

Take The Money

The largest car rental operation in the world wants to buy you. Well the decision is simple. If the deal is lucrative and it makes sense strategically then take the money!  If the deal is the only one on the table? Take the money! If you have never seen an offer this good? Take the money! If the shareholders make money? Take the money! If management and the employees fair well ? Take the money!

Remember the Bottom Line

One greedy, ill-informed shareholder does not make a deal. Nor can they break a deal. Look at the recent proxy fight involving Barnes and Noble and Ronald Burkle. He basically got his head handed to him but in the meantime costing the company considerably. I know a little about running a public company. I have seen shareholders try to remote control manage. It never is good for the company, management and the shareholders at large. Yes shareholders have rights and that is good for everyone. But remember the bottom line is take the money!

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George Lovato, Jr. is President and Principal of BH Capital Ltd., Merchant Banker, Consultant, Author and Lecturer. Happily married for over 30 years to his childhood sweetheart Gale, they live nestled in the shadows of the Sandia Mountains in Albuquerque with their six hounds.

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