Cendant Settles Shareholder Lawsuit
Cendant has agreed to increase the market value of PRIDES, convertible securities that were issued to finance the acquisition of American Bankers Insurance, Miami, by $350 million for shareholders of record April 15,1998.
The settlement, if approved in court, will cause Cendant to take an after-tax charge of $220 million, or $0.26 per share, for the fourth quarter of 1998. It is not expected to affect 1999 earnings. The accounting problems have forced the company to cancel its acquisition of ABI.