- Shares of Hertz Global (HTZ +6.5%) shoot up on heavy volume a day after the company adopted a poison pill in reaction to an unusual amount of recent buying.
- CNBC's David Faber speculates a large activist investor is behind the action with a master plan to separate the equipment leasing business and increase the company's buyback allowance.
- Wells Fargo's Richard Kwas noted that investors may be drawn to the name due to the value creation of a potential spin-off of Hertz's equipment rental unit. And, Hertz (+69.3% on the year) has lagged peers like Avis Budget (+103.5%) and United Rentals (+70.7%) in 2013.
- Wellington Management is the largest shareholder of Hertz with a 9.2% stake.
- Avis Budget (CAR +2.2%) is also higher off the fresh buzz in the car rental space.
Is an activist investor behind the Hertz Global buying?
Dec 31 2013, 10:01 ET