Avis Budget Group Adopts Short-term Stockholder Rights Plan

(RTTNews) - Avis Budget Group, Inc. (CAR), a provider of vehicle rental and car sharing services, announced that its Board of Directors has adopted a short-term stockholder rights plan that will enable the Company to continue to engage in substantial share repurchases without subjecting it to the potential risk of "creeping control" that could harm stockholders. The rights plan expires on January 22, 2018.

SRS Investment Management has disclosed an approximately 28.5% economic interest in Avis Budget Group, including voting power over approximately 9.7% of the outstanding shares and economic exposure to an additional approximately 18.8% of the outstanding shares through cash-settled derivative instruments and options. Avis Budget Group has repurchased over $1 billion of its shares over the past three years, reducing shares outstanding by approximately 20%. As announced on November 14, 2016, the Company has again increased its share repurchase authorization by $250 million and expects to repurchase a significant amount of shares in 2017.

The company and SRS entered into an agreement in January 2016 which contains standstill provisions which expire January 25, 2017, as well as SRS board representation which continues. SRS has been unwilling to agree to customary standstill provisions going forward.