P.M. BRIEFING : Consortium to Buy Avis Europe

A consortium including General Motors Corp. and Avis Inc. agreed to buy Avis Europe PLC today in a deal that values the European car rental and leasing firm at $1.4 billion.

Cilva Holdings, a group formed to complete the bid, said it was offering $9.41 per share for Avis Europe, which became a separate, public company in a stock offering after its U.S. parent, Avis Inc., was bought out by investors and managers in 1986.

Avis Europe shares surged in London to $9.29 from $8.78 on news of the bid.

The bid was seen as a first step toward reuniting Avis Europe with Avis Inc. as a private company, since the U.S.-based Avis Inc. has joined the investment group and will own 8.8% of Cilva, analysts said.

Lease International, a Luxembourg-based company, has a 64.7% share-holding in Cilva. GM owns the remaining 26.5% of Cilva.