AutoNation readies spinoff of rental biz

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AutoNation, Fort Lauderdale, Fla., expects to spin off its car rental operations as an independent, public company by the end of the second quarter in a tax-free dividend deal for current AutoNation shareholders. The new company, ANC Rental Corp., said it intends to keep its Alamo, National and CarTemps USA brands separate. The spinoff move, originally announced last year, marks a change in AutoNation's strategy from a full-line vehicle provider, including rentals, to a new-and-used-car chain. Foote, Cone & Belding, New York, handles Alamo; National uses various agencies on a project basis; and CarTemps handles advertising in-house.

Copyright April 2000, Crain Communications Inc.

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