IBAL - It's not uncommon to buy a large block of shares at a discount. The estate owned over half of the outstanding shares. If they tried to sell them on the open market, they would have collapsed the price.
Why would Avis offer more per share to the minority shareholders than they paid to the estate? Well, for one thing to avoid litigation.
I calculate book value at about $1.63 per share. It is probably understated with the company owning a 62,000 square foot manufacturing facility sitting on eight acres in Jacksonville, FL.
This whole thing is about as incestuous as it gets. The estate is the controlling shareholder of Avis!
I wouldn't want to make any huge bets either way on this one.
I have seen lots of $1 stocks with strong earnings and solid balance sheets triple, quadruple and more, but I have yet to see one go below zero.
