Cendant Ends Talks to Sell Mortgage Unit

Associated Press
08.17.2004

Cendant Corp. said Tuesday it has broken off talks with a potential buyer of its mortgage business, but will continue to seek other offers from interested parties.

The services conglomerate - owner of Avis Rent A Car Systems Inc., Days Inn and Century 21 Real Estate Corp. - would not identify the company it ended talks with. However, there has been talk on Wall Street that the possible buyer was Countrywide Financial Corp.

Cendant has been seeking an exit from the mortgage business because it is not part of the company's core business lines, which is primarily travel, lodging and real estate services. A sale would also come at a time when revenues from mortgage-lending has become more uncertain because of reduced mortgage refinancing and a possible rise in interest rates.

Shares of Cendant closed up 11 cents at $21.76 on the New York Stock Exchange.

 

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