Cendant Sells Fleet Businesses, Eliminates Litigation Committee
Direct marketer and diversified business operator Cendant Corp., New York, said yesterday that it completed the divestiture of its fleet segment to Avis Rent A Car Inc. for $1.44 billion in cash and $360 million in convertible preferred stock. The division included PHH Vehicle Management Services Corp., Cendant Business Answers (Europe) PLC, The Harpur Group Ltd. and Wright Express Corp. Cendant recorded an after-tax gain of about $700 million on the transaction.Robert D. Kunisch retired as vice chairman following the divestiture, but will remain a director.
Separately, Cendant said it would reduce the size of its board of directors from 17 to 14 members, following the elimination of the Litigation Committee. Robert P. Rittereiser, Craig R. Stapleton and E. John Rosenwald Jr. all resigned following a shareholder vote in May to do away with the committee.
Henry R. Silverman, the chairman, president and CEO of Cendant, said in a prepared statement that the three had been instrumental in restoring shareholder value to the company after accounting irregularities were discovered last year at the former CUC International, Cendant's direct marketing subsidiary.
