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Private suitors call on Hertz: WSJ
Paper says private equity firms are interested in Ford car rental unit, but IPO still possible.
July 25, 2005: 8:46 AM EDT

NEW YORK (CNN/Money) - Ahead of a possible initial public offering, Hertz Corp. is drawing interest from several private-equity firms, a newspaper report said Monday.

According to The Wall Street Journal, companies including Carlyle Group and Texas Pacific Group have expressed interest in the car rental business that is a unit of Ford (up $0.08 to $10.72, Research).

Analysts had previously valued Hertz between $4 billion and $6 billion, the report said, adding that the company increased its revenue 13 percent last year.

Carlyle has joined forces with Clayton Dubilier & Rice and Merrill Lynch Global Private Equity, while Texas Pacific has teamed with Thomas H. Lee Partners LP and Bain Capital, the report cited people close to the matter as saying.

Blackstone Group LP is also taking a look, the Journal said. All of the firms named, as well as Ford and Hertz, declined comment to the newspaper.

Ford announced last month that it would shed its Hertz unit through public offering or sale, the report said, and some analysts said a private-equity bid could be significantly more than the $6 billion Hertz is valued at.

"When you do a market survey of name recognition, Hertz is right up there with Coke. They'll be willing to pay a premium for the well-known name," Betsy Snyder, a credit analyst at Standard & Poor's who specializes in transportation, told the Journal.

A public offering would not be expected until at least September, said the report.  Top of page

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