Budget faces bankruptcy and/or buy-out by Avis owner
Jun 19, 2002, 8:07 pm
#1
Original Poster
Join Date: Dec 2000
Location: Montreal / Detroit / Miami
Posts: 745
Budget faces bankruptcy and/or buy-out by Avis owner
Well, I guess this means more pressure for car rental rates to rise higher next year.
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"At least three financial buyers bid for ailing car-rental company Budget Group Inc., but their offers were trumped by a tentative offer from travel and real estate giant Cendant Corp., people familiar with the situation said on Wednesday.
"Budget is expected to file for bankruptcy protection in the next few weeks regardless of whether it can reach a deal to be bought because bankruptcy-related debtor-in-possession financing is seen as the last way Budget could raise money to pay for a much-needed fleet of cars, these people said . . .
". . . Cendant has offered about $100 million cash and other considerations and agreed to take on about $3 billion of Budget debt, sources said. Cendant has an advantage over non-strategic bidders because it is likely to find millions of dollars of cost-savings by combining Budget with its own car-rental business, Avis Holdings Inc.
Cendant has talked to Budget for years about a possible deal, but the negotiations always have stalled, sources said. The same could happen again . . ."
[edited to add source]
Reuters Market News
by Jeffrey Goldfarb
http://biz.yahoo.com/rf/020619/leisure_budget_1.html
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Got points ? Got smiles !
[This message has been edited by Stephen loves Starwood (edited 06-19-2002).]
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"At least three financial buyers bid for ailing car-rental company Budget Group Inc., but their offers were trumped by a tentative offer from travel and real estate giant Cendant Corp., people familiar with the situation said on Wednesday.
"Budget is expected to file for bankruptcy protection in the next few weeks regardless of whether it can reach a deal to be bought because bankruptcy-related debtor-in-possession financing is seen as the last way Budget could raise money to pay for a much-needed fleet of cars, these people said . . .
". . . Cendant has offered about $100 million cash and other considerations and agreed to take on about $3 billion of Budget debt, sources said. Cendant has an advantage over non-strategic bidders because it is likely to find millions of dollars of cost-savings by combining Budget with its own car-rental business, Avis Holdings Inc.
Cendant has talked to Budget for years about a possible deal, but the negotiations always have stalled, sources said. The same could happen again . . ."
[edited to add source]
Reuters Market News
by Jeffrey Goldfarb
http://biz.yahoo.com/rf/020619/leisure_budget_1.html
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Got points ? Got smiles !
[This message has been edited by Stephen loves Starwood (edited 06-19-2002).]
Jun 19, 2002, 10:04 pm
#2
Join Date: Dec 2000
Location: MSP. NW Plat, HHonors Diamond, SPG Gold
Posts: 157
Haven't been travelling long enough to know...what happens to our PD points?
Jun 22, 2002, 8:25 am
#3
Join Date: Dec 2001
Posts: 3,046
what do people think this has as an impact in budget australia?
i have points accrued in their fastbreak loyalty program... and have quite a few points for some hefty rewards... any thoughts?
i have points accrued in their fastbreak loyalty program... and have quite a few points for some hefty rewards... any thoughts?
Jun 22, 2002, 9:33 pm
#4
Join Date: Mar 2001
Location: Tejas, I just can't get away from the place
Programs: Exxon Mobil Supertanker, WN Double Peanut, Accor Golden Cockroach
Posts: 8,350
Methinks it's time to get some Big Berthas while the time is right.
Aug 23, 2002, 6:54 am
#5
Original Poster
Join Date: Dec 2000
Location: Montreal / Detroit / Miami
Posts: 745
Oooo, here it is . . .
"Cendant Corp., Owner of Avis, Agrees to Buy Budget Group for $107.5 Million"
A measly 107.5 million dollars. A bargain.
Of course, Cendant is also going to assume 2.7 billion dollars in debt, but that's paper work.
"Cendant Corp. is adding a competitor to its Avis car rental unit, agreeing to buy most of the assets of bankrupt Budget Group Inc. in a cash deal that would make it the nation's second-largest car-rental chain.
"Cendant . . . plans to operate the leisure-oriented Budget as a separate brand from Avis Group Holdings' Avis unit, which caters largely to business travelers.
"In its deal with Budget, which sought Chapter 11 bankruptcy protection last month, Cendant will acquire the car and truck rental company's operations in the United States, Canada, Australia, New Zealand and Latin America . . . A buyer is still being sought for Budget's operations in Europe, the Middle East and Africa."
http://biz.yahoo.com/ap/020823/cenda...t_group_1.html
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As Cendant is planning to run Budget as a separate operation it looks as if your Budget points are safe for a while.
That is only an educated guess though.
Like all other point programs, the moral is to use the points when the opportunity arises.
Don't save them for that rainy day, because the way things are going in the world, rainy days are ending up drowning people not refreshing them.
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Got points ? Got smiles !
"Cendant Corp., Owner of Avis, Agrees to Buy Budget Group for $107.5 Million"
A measly 107.5 million dollars. A bargain.
Of course, Cendant is also going to assume 2.7 billion dollars in debt, but that's paper work.
"Cendant Corp. is adding a competitor to its Avis car rental unit, agreeing to buy most of the assets of bankrupt Budget Group Inc. in a cash deal that would make it the nation's second-largest car-rental chain.
"Cendant . . . plans to operate the leisure-oriented Budget as a separate brand from Avis Group Holdings' Avis unit, which caters largely to business travelers.
"In its deal with Budget, which sought Chapter 11 bankruptcy protection last month, Cendant will acquire the car and truck rental company's operations in the United States, Canada, Australia, New Zealand and Latin America . . . A buyer is still being sought for Budget's operations in Europe, the Middle East and Africa."
http://biz.yahoo.com/ap/020823/cenda...t_group_1.html
**************
As Cendant is planning to run Budget as a separate operation it looks as if your Budget points are safe for a while.
That is only an educated guess though.
Like all other point programs, the moral is to use the points when the opportunity arises.
Don't save them for that rainy day, because the way things are going in the world, rainy days are ending up drowning people not refreshing them.
------------------
Got points ? Got smiles !
Aug 23, 2002, 7:26 am
#6
Join Date: Jun 2000
Location: SPG Plat, HH Gold, Marriott Gold
Posts: 1,015
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">
it looks as if your Budget points are safe for a while.</font>
it looks as if your Budget points are safe for a while.</font>
Aug 23, 2002, 10:08 am
#7
Join Date: Nov 2001
Location: Boston, MA
Programs: Delta PM, United Premier Executive, AirTran Elite, SPG Platinum, Hyatt Diamond, Hilton Gold VIP, Her
Posts: 364
Heard there's a good chance that the deal will go through. Not sure if points will be honored.
[This message has been edited by dbk10 (edited 08-27-2002).]
[This message has been edited by dbk10 (edited 08-27-2002).]
Aug 27, 2002, 4:37 pm
#8
Join Date: Apr 2001
Location: Denver, CO, USA
Posts: 387
I just got an offer for quadruple points, so I hope they don't drop it afterwards. That would sort of be the opposite of a loyalty program.