EuroDollar float on again as market revives

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The Independent Online
THE on-off flotation of EuroDollar is on again. The issue, expected to value the UK's second largest car rental business at more than pounds 100m, will be priced today just three days after it was postponed.

The flotation was put on hold on Tuesday, the day before the prospectus was due to be issued, following Monday's sharp fall in the stock market.

Ian Mosley, chief executive, was advised by Warburg and Schroders, broker and merchant bank to EuroDollar. He said it was always the intention to return to the market when conditions had stabilised. 'We decided it was not very clever to try to push water uphill.'

Bookbuilding with investing institutions continued during the week.

EuroDollar, which was bought by its management from the TSB group for pounds 118m last August, claims 10 per cent of the UK rental market, behind Avis's 14 per cent and ahead of Hertz, Europcar and Budget.

NEW YORK - In an effort to raise badly needed cash, General Motors has entered into talks to sell its car hire agency, National Car Rental System, for a reported dollars 1bn, writes Larry Black.

Lawrence Ramaekers, National's president, said half a dozen potential buyers had expressed interest, and he hoped the sale would be announced before the end of August.

GM's decision to divest National comes just a few weeks after its rival Ford announced plans to acquire Hertz, the largest US car rental firm. GM acquired a minority stake in National a decade ago, employing it as a captive customer for excess car production.