Avis hopes to top Hertz’s bid to buy Thrifty

“We would like to make a substantially higher offer to acquire Dollar Thrifty, especially in light of your recent performance,’’ Ronald Nelson wrote.

Last week, Dollar Thrifty posted a record first-quarter profit, earning $27.3 million, even though revenue slipped almost 4 percent. The profit topped expectations.

The move came a week after Hertz, the world’s largest car rental company by locations, offered a cash-and-stock bid for Dollar Thrifty that values the company at $41 per share.

Regardless of who ultimately acquires Dollar Thrifty, the expanded company will have to compete in an increasingly consolidated rental car market full of customers hoping to rent wheels for as little as possible.

Hertz, based in Park Ridge, N.J., owns the Advantage rental car company and competes against Enterprise Holdings Inc., which has 7,600 Enterprise, Alamo, and National sites. Enterprise had $12.9 billion in revenue last year. Avis has 6,900 Avis and Budget locations and about $5.13 billion in revenue.

Nelson said executives at his company have been interested in a possible acquisition of Dollar Thrifty for several months, going as far as to try to set up meetings with leaders to talk about a sale, including a dinner planned for last week that was canceled after the deal with Hertz was announced.

“It is hard to understand how your failure to engage in discussions with an interested strategic buyer, who you know also would be able to achieve significant synergies as a result of a combination, can be consistent with the fiduciary duties that you and your board carry to seek the best possible deal for your shareholders,’’ he wrote.

Officials at Dollar Thrifty did not immediately return a message seeking comment.

A spokesman for Hertz said the company was still evaluating the letter.