Eurodollar takeover puts directors in line for pounds 12m

The directors of Eurodollar, the car rental group, are set to share pounds 12m after the board yesterday recommended a pounds 95m cash offer from Republic Industries, a US motor group which owns the Alamo and National Car Rental chains.

The largest beneficiary will be chief executive Ian Mosley, who will net pounds 4m. Freddie Aldous, chairman, and Steve Westoby, finance director, will both realise pounds 3m from the deal while John Leigh, director of UK operations, will get pounds 2.7m.

The cash offer is struck at 190p a share which represents a 60 per cent premium to Friday's closing price. However, it is still well below the 220p pricing when the company came to the market three year ago.

Eurodollar was hit by two profit warnings in a matter of months at the end of 1995 caused by a sharp fall in the residual value of ex-rental vehicles. At one point the shares fell as low as 67p.

Ian Mosley said: "It would be nice if things had been different. But compared to the 67p of not long ago, this looks wonderful." The shares closed 69.5p higher yesterday at 188p.

The deal will make Eurodollar a more powerful force in the car rental sector which is increasingly becoming a global business with large corporate clients looking for world-wide deals with one operator.

Eurodollar is already the second-largest car rental group in the UK behind Avis. Hertz remains the world leader.

Republic Industries, based in Fort Lauderdale, Florida, said the acquisition of Eurodollar would enable it to expand in the UK and Europe. It hopes to expand Eurodollar's business overseas, particularly in the US, and also increase the volume of US customers renting cars in Britain.

The Eurodollar name is likely to be dropped though no decision has been taken on a new brand

It is likely that Republic will withdraw from Eurodollar's contract with the Dollar car rental operation in the US which has not proved satisfactory.

Republic Industries is the largest new vehicle retailer in the US but also has five car rental brands including Alamo, National Car Rental, Spirit and Snappy. Car rental accounts for around 30 per cent of the group's $2.4bn sales.

The group recorded a net loss of $59m last year but is capitalised at $9bn.

Eurodollar recorded profits of pounds 8.3m on sales of pounds 107m in the year to March. It has 110 branches in the UK which account for most of its business.

Geoff Corbett of Republic's car rental division said there would be no job losses and that the plans to grow the business meant new employment could be created. The Eurodollar board will be retained.

Eurodollar will pay an interim dividend of 2.5p per share subject to the offer becoming unconditional before 20 November.

News
people
News
people
News
peopleStella McCartney apologises over controversial Instagram picture
Life and Style
Laid bare: the Good2Go app ensures people have a chance to make their intentions clear about having sex
techCould Good2Go end disputes about sexual consent - without being a passion-killer?
PROMOTED VIDEO
Arts and Entertainment
Richard Burr remains the baker to beat on the Great British Bake Off
tvRichard remains the baker to beat as Chetna begins to flake
News
i100
Sport
footballArsenal 4 Galatasaray 1: Wenger celebrates 18th anniversary in style
Arts and Entertainment
Amazon has added a cautionary warning to Tom and Jerry cartoons on its streaming service
tv
News
people
News
The village was originally named Llansanffraid-ym-Mechain after the Celtic female Saint Brigit, but the name was changed 150 years ago to Llansantffraid – a decision which suggests the incorrect gender of the saint
newsA Welsh town has changed its name - and a prize if you can notice how
News
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
Kristen Scott Thomas in Electra at the Old Vic
theatreReview: Kristin Scott Thomas is magnificent in a five-star performance of ‘Electra’
News
Destructive discourse: Jewish boys look at anti-Semitic graffiti sprayed on to the walls of the synagogue in March 2006, near Tel Aviv
peopleAt the start of Yom Kippur and with anti-Semitism flourishing, one Jew can no longer ignore his identity
Life and Style
Couples who boast about their relationship have been condemned as the most annoying Facebook users
tech
Arts and Entertainment
Hayley Williams performs with Paramore in New York
musicParamore singer says 'Steal Your Girl' is itself stolen from a New Found Glory hit
News
i100
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Trainee Recruitment Consultant - Birmingham - Real Staffing

£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...

Trust Accountant - Kent

NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...

Graduate Recruitment Consultant - 2013/14 Grads - No Exp Needed

£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...

Law Costs

Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...

Day In a Page

Italian couples fake UK divorce scam on an ‘industrial scale’

Welcome to Maidenhead, the divorce capital of... Italy

A look at the the legal tourists who exploited our liberal dissolution rules
Time to stop running: At the start of Yom Kippur and with anti-Semitism flourishing, one Jew can no longer ignore his identity

Time to stop running

At the start of Yom Kippur and with anti-Semitism flourishing, one Jew can no longer ignore his identity
Tom and Jerry cartoons now carry a 'racial prejudice' warning on Amazon

Tom and Jerry cartoons now carry a 'racial prejudice' warning on Amazon

The vintage series has often been criticised for racial stereotyping
An app for the amorous: Could Good2Go end disputes about sexual consent - without being a passion-killer?

An app for the amorous

Could Good2Go end disputes about sexual consent - without being a passion-killer?
Llansanffraid is now Llansantffraid. Welsh town changes its name, but can you spot the difference?

Llansanffraid is now Llansantffraid

Welsh town changes its name, but can you spot the difference?
Charlotte Riley: At the peak of her powers

Charlotte Riley: At the peak of her powers

After a few early missteps with Chekhov, her acting career has taken her to Hollywood. Next up is a role in the BBC’s gangster drama ‘Peaky Blinders’
She's having a laugh: Britain's female comedians have never had it so good

She's having a laugh

Britain's female comedians have never had it so good, says stand-up Natalie Haynes
Sistine Chapel to ‘sing’ with new LED lights designed to bring Michelangelo’s masterpiece out of the shadows

Let there be light

Sistine Chapel to ‘sing’ with new LEDs designed to bring Michelangelo’s masterpiece out of the shadows
Great British Bake Off, semi-final, review: Richard remains the baker to beat

Tensions rise in Bake Off's pastry week

Richard remains the baker to beat as Chetna begins to flake
Paris Fashion Week, spring/summer 2015: Time travel fashion at Louis Vuitton in Paris

A look to the future

It's time travel fashion at Louis Vuitton in Paris
The 10 best bedspreads

The 10 best bedspreads

Before you up the tog count on your duvet, add an extra layer and a room-changing piece to your bed this autumn
Arsenal vs Galatasaray: Five things we learnt from the Emirates

Arsenal vs Galatasaray

Five things we learnt from the Gunners' Champions League victory at the Emirates
Stuart Lancaster’s long-term deal makes sense – a rarity for a decision taken by the RFU

Lancaster’s long-term deal makes sense – a rarity for a decision taken by the RFU

This deal gives England a head-start to prepare for 2019 World Cup, says Chris Hewett
Ebola outbreak: The children orphaned by the virus – then rejected by surviving relatives over fear of infection

The children orphaned by Ebola...

... then rejected by surviving relatives over fear of infection
Pride: Are censors pandering to homophobia?

Are censors pandering to homophobia?

US film censors have ruled 'Pride' unfit for under-16s, though it contains no sex or violence