FOR IMMEDIATE RELEASE Exhibit 99.2
FOR IMMEDIATE RELEASE
CENDANT CORPORATION ANNOUNCES FINAL RESULTS OF ITS
DUTCH AUCTION SELF-TENDER OFFER
New York, NY, July 21, 1999 - Cendant Corporation (NYSE:CD) today announced
that, in accordance with the final results of its Dutch Auction self-tender
offer which expired on July 15, 1999 at 12:00 midnight, New York City time, the
Company will purchase 50 million shares validly tendered at a price of $22.25
per share. The final proration factor for the tender offer is 90.0126%. All
holders of fewer than 100 shares who validly tendered at a price of $22.25 per
share or less will not be subject to proration. The Company has also elected to
purchase an additional 2,850 shares validly tendered by holders at or below
$22.25 per share which, as a result of proration, resulted in such holders
owning fewer than 100 shares. The Company had announced the preliminary results
of the offer on July 16, 1999.
The final count by the depositary for the offer indicated that
approximately 55.5 million shares were tendered (including approximately 145,000
shares in odd lots) and not withdrawn at prices of $22.25 per share or lower.
The depositary for the offer will promptly issue payment for the shares accepted
under the offer and return all shares tendered in excess of this price and
shares not accepted because of proration. The shares purchased represent about
7% of the approximately 768 million shares outstanding immediately prior to the
offer.
Including shares repurchased by way of the Dutch Auction self-tender offer,
the Company's previously announced and completed share repurchase programs and
the 7.1 million shares returned to the Company in connection with the sale of
Hebdo Mag International, Cendant has repurchased approximately 141 million
shares. In aggregate, Cendant's share repurchase programs have risen to
approximately $2.9 billion. Cendant expects to continue to use excess financial
resources, including cash flow from operations and proceeds from asset sales, to
repurchase shares and retire debt. The Company's stated objective is to maintain
a target debt to total capital ratio of 40% or less.
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. 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 the resolution of the pending class action litigation and the
Company's ability to implement its plan to divest non-strategic assets.
Cendant Corporation is a global provider of 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 franchisors of hotels, rental car agencies, tax preparation
services and real estate brokerage offices. The real estate segment also
includes Welcome Wagon/GETKO and the Company's soon-to-be-created residential
real estate services portal on the Internet. As a provider of outsourcing
solutions, Cendant is the world's largest vacation exchange service, a major
provider of mortgage services to consumers and the global leader in employee
relocation. 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 more than 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 www.cendant.com or
by calling 877-4INFO-CD (877-446-3623).
Media Contact: Investor Contact:
Elliot Bloom Denise L. Gillen
212-413-1833 212-413-1833
Samuel J. Levenson
212-413-1834