Hertz may spin-off or sell its equipment rental business, as a result of pressure from shareholders and stakebuilding by activist hedge funds including Dan Loeb’s Third Point, according to The Financial Times.
Shares jumped in December 31 trading after it was reported that Loeb had amassed a stake of less than 5 percent and Hertz said it had instituted a “poison pill” to block anyone from accumulating more than 10 percent.
The separation of the equipment rental business has been a focus of investor questions for several years. Analysts said it would probably be central to any activist’s demands for change at the company, reported The Financial Times.
Hertz “has had dialogue with a number of shareholders and welcomes their input towards the goal of enhancing shareholder value,” Hertz said in a statement.
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