NEW YORK (AP) -- Hertz's stock dropped more than 3 percent on Tuesday as the car rental company announced that its top three shareholders are selling about 12 percent of its outstanding stock.
THE SPARK: Hertz Global Holdings Inc. said late Monday that investment funds associated with Clayton, Dubilier & Rice LLC, The Carlyle Group and Bank of America Merrill Lynch are selling 50 million shares to J.P. Morgan.
Hertz said that the trio will continue to own about 110 million shares, or about 26 percent of its outstanding stock, once the sale is complete.
Hertz currently has approximately 421 million outstanding shares, according to FactSet.
The Park Ridge, N.J., company said that the number of outstanding shares will not change as a result of the offering and that it won't receive any proceeds from the stock sale.
SHARE ACTION: Shares of Hertz declined 49 cents, or 3 percent, to $15.72 in morning trading. Over the past year, the stock has traded in a range of $10.22 to $16.64. The shares are up 34 percent for the year to date.