Advantage Rent-A-Car parent explores alternatives that could involve Dollar Thrifty

By Lisa Kerner

Charlotte, N.C., May 9 - ARC Venture Holding, Inc., an affiliate of Dollar Thrifty Automotive Group, Inc. investor Dennis E. Hecker, retained the investment banking firm of Houlihan Lokey to assist in exploring strategic alternatives for ARC Venture and its daily car rental business, including alternatives with respect to Dollar Thrifty.

ARC Venture owns all of the outstanding shares of Southwest-Tex Leasing Co., Inc., which does business as Advantage Rent-A-Car.

Hecker - who owns a controlling interest in ARC Venture - intends to withhold votes from Dollar Thrifty's nominees for election to the board of directors and to vote against the addition of 660,000 shares to Dollar Thrifty's amended and restated long-term incentive plan and director equity plan, according to a schedule 13D filing with the Securities and Exchange Commission.

On March 24, Hecker reported the purchase of 1,075,129 shares of Dollar Thrifty's stock for an initial 5.003% stake in the company. Hecker's shares were purchased between March 12 and March 19 priced from $12.05 to $13.68 each, a prior SEC filing said.

The investor, chairman of Denny Hecker's Automotive Group, Inc., owns and operates various businesses in the automotive industry, including automobile and truck dealerships, fleet leasing and daily car rental businesses.

Dollar Thrifty is a Tulsa, Okla., vehicle rental company.

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