Hertz’s bargain: split off Thrifty

Hertz is considering separating Dollar Thrifty Group’s two brands to win regulatory approval of its $2.6 billion deal, The Post has learned.

The possible split of the Dollar and Thrifty brands come as Hertz, which has been pursuing DTG for five years, is facing a stubborn Federal Trade Commission.

Regulators are concerned about Hertz gaining a roughly 40 percent airport market share.

Fearful the deal might get blocked, Hertz is weighing the eleventh-hour offer to split the Thrifty brand in hopes of winning FTC approval, two sources close to the situation said.

“The FTC is saying you need viable competitors,” a source said.

Thrifty, which offers lower prices than Hertz does, represents about 25 percent of DTG revenue. Hertz is telling the FTC it will lower Thrifty’s prices, source said.

Dollar, meanwhile, is mid-priced, roughly matching prices of the biggest car rental agency, Enterprise.

The Dollar and Thrifty brands are marketed separately, but often share vehicles, back office employees and facilities.

The Post wrote exclusively Oct. 18 that the FTC vote on approving the Hertz deal was too close to call.

At the time, DTG was trading at $86.81, close to the $87.50 offer price.

DTG’s shares fell 6 percent yesterday to $79.24 on reports that Hertz had hired litigation counsel to defend the merger if the FTC sues to block the deal.

The FTC vote, sources said, is split among the four commissioners — making Chairman Jon Liebowitz the tie-breaking vote.

The vote, originally scheduled for this month, is now planned for soon after the Presidential election, sources said.

Hertz recently hired former DOJ Chief Christine Varney, now a Cravath, Swaine & Moore lawyer, to help get this deal through.

A Hertz spokesman declined comment. The FTC did not return calls.