Over the course of the past weeks, the bankrupt car rental company had been the target of a massive bidding war between two groups of investors and this past week, the issue was finally resolved.
On May 11, it emerged that the consortium headed by Certares Management and Knighthead Capital Management had been chosen by Hertz Global Holdings Inc (OTCMKTS:HTZGQ) for taking it out of bankruptcy. That lit a fire to the Hertz stock as well and ended up clocking gains of as much as 95% over the course of the week.
This is, without a doubt, a major development for the car rental company. The offer from the group gives Hertz an enterprise value of as much as $7.43 billion. However, more importantly, the existing shareholders in the company are going to get $8 a share once the transaction is completed. It now remains to be seen if the stock can continue to rally this week.