N EW YORK - Cendant Corp., a conglomerate valued at US$20 billion said yesterday it would break into four separate companies reported several US dailies.
This was in response to unhappy investors and stocks fell by US$1.32 reported a news wire. Cendant owns Century 21 real estate, Ramada hotels, Avis rental cars and Orbitz online travel service.
The company has found the going tough since weathering a 1998 accounting scandal, basing its latest decision that Cendant’s businesses are worth more separately.
Cendant's split, which was approved over the weekend by the company's board of directors, will occur next year.
One company will take over Cendant's hospitality businesses, including the Ramada, Howard Johnson and Days Inns hotel brands. The other three focus on real estate; travel booking, including Orbitz, Galileo and Cheap Tickets brands; and the Avis and Budget car-rentals businesses.
The Cendant name will no longer exist.