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Non-Tech : Cendant Corporation (NYSE:CD) -- Ignore unavailable to you. Want to Upgrade?

To: Roger B Finlen who wrote (1588)	8/15/1998 12:29:00 PM
From: Benkea	Respond to of 3627

Roger: Not sure I follow: "Benkea, while agreeing with much of your past postings, lets get real, lossing 7 billion on one deal doesn't increase credit rating - that 13 billion with a capital B. Where does 7 billion come from, 11 billion merger worth, less 2 sales to assets for about 4 bill = 7B." Credit ratings don't consider the ridiculous paper stock values given to equity prices, pre or post merger. Rather they are derived from more concrete mathmatical formulas such as debt to equity, etc. Selling these units which were previously part of the ridiculous multiple CD was trading for in April would REDUCE debt to equity while things as cash flow now appear to be little changed. Also, let's not forget that the reversal of (over-reserved) merger charges by MORE than the 1997 EPS restatement leaves net equity INCREASED not DECREASED. Just because the offset doesn't affect the EPS via the chicanery of pre and post one-time charges, doesn't mean the net affect is not ZIPPO (less the lawsuits). Also, your conversion ratios are a bit off. When CD common gets between $37 and $48.10, CD.PI holders get $50 worth of common - not 1 to 1. When common gets above $48.10, CD.PI holders get 1.0395 in common - not 1 to 1. Ben