NEW YORK (CNNMoney.com) -- In a letter on Monday, car rental company Avis Budget said it would top Hertz's bid to buy Dollar Thrifty.
"We would like to make a substantially higher offer to acquire Dollar Thrifty, especially in light of your recent performance," Avis Budget Group CEO Ronald Nelson said in a letter to Dollar Thrifty Automotive Group's Board of Directors.
Nelson added that he was "astonished" Dollar Thrifty (DTG) had agreed to the terms of Hertz Global Holding's offer, made last week, especially before meeting with Avis to discuss a possible transaction.
Shares of Dollar Thrifty surged nearly 14% to $50.12 in afternoon trading on the news.
Hertz (HTZ, Fortune 500) announced last week that it would buy Dollar Thrifty for $41 per share in cash and stock, which represented only a 5.5% premium over Dollar Thrifty's share price at the time of Hertz's offer.
"We at Avis Budget have on several occasions in the past expressed interest in entering into a transaction with Dollar Thrifty, yet at no stage over the last several months did you or your financial advisor engage us in any discussions about a transaction or offer to provide us with information so that we might submit a bid," said Nelson.
Nelson said Avis (CAR, Fortune 500) is looking forward to further discussions about the terms of its offer and said he hopes Dollar Thrifty will "allow its shareholders the opportunity they deserve to realize the full value of their investments in Dollar Thrifty."
A Dollar spokeswoman declined to comment on the offer and Hertz did not immediately respond to a request for comment. 
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