NEW YORK- Cendant Corp. shares rose as much as 8% in after-hours trading on October 25, after the hotel, real estate and travel franchisor said it will spin off of its individual membership businesses.
Cendants individual membership businesses provided 63% of the companys 1999 revenues. Its insurance and wholesale businesses make up the rest.
Cendant shareholders will receive 100% of the stock in the as-yet-unnamed venture upon completion of the spin off in mid 2001, according to a company statement.
Current Cendant Membership Services (CMS) president Scott Bernstein will head the new company, to be composed primarily of CMS and Cendant Incentives. (10/26/00)
Source: CBS MarketWatch