Hertz Gets Sweetened Offer as Bankruptcy Bidding War Escalates

Knighthead Capital Management and Certares Management for a second time sweetened their proposal to buy Hertz out of bankruptcy as the rental car company’s board meets to review bids, according to people with knowledge of the matter.

The latest plan, which was submitted Tuesday afternoon, would hand shareholders more value -- specifically a 40% stake in the reorganized company through a combination of direct investment and a more than $1 billion equity rights offering, the people said.

Representatives for Knighthead and Certares declined to comment. A representative for Hertz didn’t immediately respond to a request for comment. Hertz shares reversed ...