NEW YORK— With no other bidders stepping forward, Cendant Corp. received the keys to rental car company Budget Group on Oct. 24, according to a report on TheDeal.com. The New York financial services and travel giant paid $3.4 billion to take over the nations second-largest rental car company. An auction, in which other bidders could have made offers to top Cendants stalking-horse bid, had been scheduled for Oct. 24. Had anyone else trumped Cendants bid, it would have had to pay $15 million in fees and expenses. Although a supervised bankruptcy auction normally draws several bidders, a Budget spokeswoman said no higher offers were received by the Oct. 22 deadline. (The spokeswoman did confirm rumors that Deutsche Bank AG was interested in the company, but no bid ever materialized from the German bank). Cendant will seek approval on its bid from Judge Mary Walrath of the U.S. Bankruptcy Court for District of Delaware at a hearing scheduled for Oct. 28. Cendant will combine Budget with its Avis Group Holdings division. The combined company will still be No. 2 behind privately held Enterprise Rent-a-Car Co. Terms require Cendant to pay $110 million in cash and assume a $2.7 billion fleet financing agreement. In addition, Cendant would pay Budget creditors $200 million and take on a $420 million letter of credit facility. Advising Budget is Lazard and Sidley Austin Brown & Wood LLP. The companys unsecured creditors were advised by Jefferies & Co. and Brown Rudnick Berlack Israels LLP. SOURCE: TheDeal.com
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