Consortia of private-equity firms bid for Hertz - $10 billion

Two groups of private equity firms are reportedly in the fray to acquire
Ford Motor Co.'s rental car subsidiary, Hertz Corp.

As per the recent media reports, one consortium includes Bain Capital
Partners LLC, Blackstone Group LP, Texas Pacific Group and Thomas H. Lee
Partners LP. The second group includes Carlyle Group, Clayton, Dubilier
& Rice Inc.

Bloomberg said in its report: "The rental-car unit of Ford Motor Co. may
fetch about $10 billion, said the people, who declined to be identified.
Selling Hertz is part of Ford's plan to raise funds as it loses market
share in the U.S. to Asian automakers led by Toyota Motor Corp. Hertz,
based in Park Ridge, New Jersey, is the largest rental-car company with
about 7,400 locations in more than 150 countries. Its second-quarter net
income rose 3 percent to $97 million, while Ford's earnings dropped 19
percent." On its part, Ford is reportedly said to be considering the
proposals and is expected to decide whether to sell Hertz to privately,
or opt for a flotation.

Ford has owned all of Hertz since 2001, when the company spent $707
million to buy back an 18.5 percent stake that it had sold to the public
four years earlier. Hertz's net income more than doubled last year to
$365.5 million. Revenue was $6.7 billion. "Hertz said in a regulatory
filing in June that it was considering an initial public offering. The
company didn't say when a stock sale might occur. Ford said at the time
that the filing gives Hertz the option of pursuing an IPO," as per the
report.