Hertz Revved Up for Dollar Thrifty on Advantage Bid

A higher price could also reflect a recovering economy and auto sector, punctuated by stronger than expected earnings by General Motors (GM) , on Thursday. A price could also turn what was a hostile bid into a friendly negotiation. After Dollar Thrifty shareholders rejected Hertz's initial takeover offer in late 2010, Hertz upped its offer in 2011. In October, Dollar Thrifty took itself selling block and launched a $400 million share buyback program.

Shares of Hertz are up over 34% year-to-date on improving sales and a decrease in expense. Meanwhile, Dollar Thrifty shares are up over 16% in 2012.

Analysts polled by Bloomberg give Hertz shares a price target of $20.50, while they value Dollar Thrifty shares at $85.20.

Those analysts also expect improving revenue and profits across the industry in 2012. Hertz's sales are expected to grow over 7% to nearly $9 billion. Meanwhile, Dollar Thrifty is expected to grow sales by roughly 4%, according to Bloomberg data.

Even with strong growth in rentals and a still strong used car market, a key to companies as they sell old fleets, the big four in auto rental's struggled to increase prices in 2011. In first quarter earnings calls, Hertz, Avis Budget, and Dollar Thrifty all reported falling rental prices, with some expecting the trend to continue.