A newly formed Avis Employee Owners Association today presented demands to company management regarding an estimated $288 million in unallocated ESOP shares, in connection with the proposed sale of Avis Inc. to HFS Inc.
The $288 million represents the value of an estimated 12 million shares at $24 per share. The association claims that because those shares are held in trust for employees, the proceeds should go to employees. The unallocated shares represent about half of the shares in the ESOP trust, according to the association.
The association criticized management for keeping employees in the dark about the deal and expressed concern the company may be undervalued. A spokesman for the association said it isn't clear what will happen to the shares. ``We'd like to find out,'' he said.
Company officials couldn't be reached for comment.