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

To: J Bertrand who wrote (2992)	2/4/1999 7:58:00 AM
From: Paul Lee	Read Replies (1) \| Respond to of 3627

UK Secretary of State for Trade and Industry Requires Divestiture Of Green Flag Unit Before Cendant and RAC Motoring Services Merger Can Proceed Company Says Divestiture of Green Flag is an Unacceptable Condition Cendant Says RAC Valuation Was Based on Future Synergies with Green Flag NEW YORK, Feb. 4 /PRNewswire/ -- Cendant Corporation (NYSE: CD) today announced that the UK Secretary of State for Trade and Industry has cleared its proposed acquisition of RAC Motoring Services on the condition that Cendant divests its Green Flag breakdown assistance business. Cendant does not regard the proposed condition as reasonably acceptable or commercially feasible and therefore it is the Company's intention not to proceed with the acquisition of RAC Motoring Services. Stephen P. Holmes, Cendant Corporation vice chairman, stated: "At the outset, we explained to the MMC that the divestiture of Green Flag would not be acceptable. Thus, we have informed the RAC that we do not regard the condition described by the Secretary of State as acceptable and, for that reason, we are unable to proceed with the acquisition of RAC Motoring Services. Our valuation of RAC Motoring Services was driven by future synergies between the RAC and Green Flag businesses, which would have resulted in cost savings to benefit our shareholders and service improvements to benefit RAC and Green Flag members. However, our intention is now to build on the already successful record of Green Flag and to provide a strong and vigorous competitor to the RAC, the AA and others in the UK breakdown services market. We will utilize the funds committed to the RAC transaction to further reduce debt and repurchase Cendant shares."

To: J Bertrand who wrote (2992)	2/4/1999 8:47:00 AM
From: Benkea	Respond to of 3627

Jeff: I am well aware of HFS' outperformance of BOTH INTC and MSFT from 92-97 as well as the extremely large institutional ownership, but last year corrected alot of that. "I run my own company. Nobody makes perfect decisions. We all make mistakes." I just sold mine last year. I too made mistakes but I am not sure any of them anywhere near approached decreasing the value of my company by 70% in 3 months. Further, the last thing I would have done if I had made such a MAJOR F-Up is INCREASE by compensation afterwards by taking directly from the shareholders who I lost 70%! Henry made a HUGE mistake and compounded that mistake with a HUGE show of lack of integrity with his options scam. Henry earned his respect prior to the screw up and he has EARNED his contempt after the crash and options game. If he wants my respect (and that of many others), he will damn sure have to EARN it back.