Hertz wants to spin-off Herc, the equipment rental part of the company. This division takes care of renting diggers, drills, trailers, etc. In the last year this accounts for $1.1 billion revenue, representing 13% out of the Hertz total.

This appears to be an older idea as there has been speculation before that this spin-off will generate big benefits.

Under the chosen structure, the company will most probably spin off this division to its own shareholders. This transaction permits Hertz and Herc to separate without paying normal taxes as it would in a divestiture.

Hertz shares closed @ $25.98 per share on Friday, generating a total value of $11.6 billion.