Avis Europe to rejoin US cousin in £636m deal
Avis Europe is on the verge of a reunification with its US counterpart Avis Budget, after it lodged a mammoth £636m bid to end 25 years as separate entities.
Estranged: Avis Europe was hived off from its US cousin in 1986
The US firm made Avis Europe shareholders an offer at 315p per share, a 60% premium to its closing price of 196.6p before the announcement.
The bumper bid sent shares in Avis Europe rocketing by nearly 60% in a day, up 114.1p to 310.75p.
A takeover would see the history of the two companies come full circle, more than two decades after Avis Europe was hived off from its US cousin in 1986.
But a merger now looks all but certain to reunite the two estranged branches of the car rental family to create a transatlantic firm with annual revenues of more than £4bn.
Pascal Bazin, chief executive of Avis Europe, said the new business would benefit from 'our two strong global brands, increased scale and improved access to capital'.
Bankers at Barclays Capital advised Avis Europe on the deal.
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