News February 7, 12:28 Eastern Time
Liberty Media Completes Transaction with Cendant To Invest $400 Million in Cendant Common Stock Liberty Media Purchases 18 Million Shares of Cendant Common Stock and a Two- Year Warrant to Purchase Approximately 29 Million Cendant Common Shares
NEW YORK, Feb 7, 2000 /PRNewswire via COMTEX/ -- Cendant Corporation (NYSE: CD)
today announced that Liberty Media Corporation has completed its previously
announced transaction with the Company to invest $400 million in cash to
purchase 18 million shares of Cendant common stock and a two-year warrant to
purchase approximately 29 million shares of Cendant common stock at an exercise
price of $23.00 per share.
Cendant also announced that Liberty Media Chairman, John C. Malone, Ph.D., will
be appointed as a Cendant director at a meeting of the Company's board later
this month.
The Company previously announced that Cendant and Liberty Media have entered
into a strategic alliance to develop Internet and related opportunities
associated with Cendant's travel, mortgage, real estate and membership
businesses.
Liberty Media holds interests in a broad range of video programming,
communications, technology and Internet businesses in the United States, Europe,
South America and Asia. Liberty Media's principal assets include interests in
StarzEncore Media Group, Discovery Communications, Inc., Time Warner, Inc., QVC,
Inc., Liberty Digital, Inc., USA Networks, Inc., Telewest Communications plc, TV
Guide, Inc., General Instrument Corporation, Sprint PCS Group and The News
Corporation Limited. More information about Liberty Media and its affiliates is
available on Liberty's web site at libertymedia.com.
Cendant Corporation is a global provider of real estate, travel and direct
marketing related consumer and business services. The Company's core
competencies include building franchise systems, providing outsourcing solutions
and direct marketing. As a franchisor, Cendant is among the world's leading
franchisers of real estate brokerage offices, hotels, rental car agencies, and
tax preparation services. The Company's real estate-related operations also
includes Move.com (http://www.move.com), Cendant's residential real estate
services portal on the Internet. As a provider of outsourcing solutions, Cendant
is a major provider of mortgage services to consumers, the global leader in
employee relocation, and the world's largest vacation exchange service. In
direct marketing, Cendant provides access to insurance, travel, shopping, auto,
and other services primarily to customers of its affinity partners. Other
business units include NCP, the UK's largest private car park operator, and
Wizcom, an information technology services provider. Headquartered in New York,
NY, the Company has approximately 30,000 employees and operates in over 100
countries.
More information about Cendant, its companies, brands and current SEC filings
may be obtained by visiting the Company's Web site at cendant.com or
by calling 877-4INFO-CD (877-446-3623).
Statements about future results made in this release may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are based on current
expectations and the current economic environment. The Company cautions that
these statements are not guarantees of future performance. They involve a number
of risks and uncertainties that are difficult to predict including the outcome
of litigation. Actual results could differ materially from those expressed or
implied in the forward-looking statements. Important assumptions and other
important factors that could cause actual results to differ materially from
those in the forward-looking statements are specified in the Company's Form
10-K/A for the year ended December 31, 1998, including completion of the
settlement of the class action litigation.
SOURCE Cendant Corporation
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