Avis Budget Group Adopts One-Year Stockholder Rights Plan

(RTTNews) - Avis Budget Group Inc. (CAR) announced that its Board of Directors has approved the adoption of a one-year Stockholder Rights Plan to protect the interests of all Avis Budget Group stockholders. The Rights Plan is intended to preserve the Company's ability to evaluate and pursue all strategic actions and prevent SRS Investment Management, the Company's largest stockholder, from obtaining effective control without paying a control premium.

The Rights Plan is in place for a one-year duration, expiring on January 13, 2019. Should the Board extend or renew the Rights Plan, it will put such extension or renewal to a shareholder vote at the next annual meeting of stockholders. The Rights Plan may also be terminated, or the rights may be redeemed, prior to the scheduled expiration of the Rights Plan under certain other circumstances.

SRS has disclosed a 30.7% economic interest in Avis Budget Group, including voting power over 14.7% of the outstanding shares and economic exposure to an additional 16% of the outstanding shares through derivative instruments.

The Company and SRS entered into a cooperation agreement in May 2017 containing standstill provisions and ownership limitations which expires today.

"We are disappointed that SRS has forced us into a position where we need to take this action to protect the interests of all stockholders," said Leonard S. Coleman, lead independent director of Avis Budget Group. "We have maintained a cooperative relationship with SRS and their representatives on the Board over the past two years, and they recently expressed their support for the management team and the Company. We remain open to entering into a cooperation agreement with SRS on terms that protect all stockholders, and we hope that SRS agrees to continue to be a partner with the rest of the Board."