Mr. Sensitive

January 2, 2013

Zero’s 2013 Gift to ZIP Shareholders

Filed under: Uncategorized — lbej @ 09:00

(Reuters, Jan. 2) – Car rental company Avis Budget Group Inc.will buy Zipcar Inc (ZIP) for about $500 million in cash to join larger rivals Hertz Global Holdings Inc and Enterprise Holdings Inc in the fast-growing U.S. car-sharing market.  The offer of $12.25 per share represents a premium of 49 percent to Zipcar’s Monday close. Zipcar’s shares were up 48 percent at $12.16 before the bell on Wednesday.

Here’s what I had to say about Zipcar last week:  I have my doubts about Zipcar, and at 95 times trailing earnings, those doubts are hardly reflected in the price.

All it took for this deal to get done was swapping Zero out of ZIP and into ZAGG; I hope Zipcar shareholders appreciate the sacrifice the FSX made on their behalf.  I also hope they express their appreciation in the form of cash, sent to me.

 

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