Chairman seeks to end uncertainty over cendant
Article Abstract:
The Cendant Corporation, the company created from the merger of CUC International and HFS Inc., has discovered major accounting irregularities which will drastically reduce its 1997 earnings. The loss, which could be as much as $115 million, has caused many stockholders to question the plans to change leadership of the company in the year 2000. An aspect of the merger deal was for the CEO of CUC International, Walter A. Forbes, to take over as chief executive of Cendant Corp. Mr. Forbes has announced that he plans to assume the post as planned and that any speculations that he will lose the position are wrong. In order to oust him, 80% of Cendant's directors would have to vote against him and a spokesman from the company says there are no plans to do this. The accounting irregularities themselves will be investigated this summer with an internal audit.
Comment:
Forbes announces he will take over as CEO of Cendant Corp as planned in 2000
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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The chairman of Cendant steps down
Article Abstract:
Cendant Corporation's chairman, Walter A. Forbes, resigned 14 weeks after serious accounting irregularities had been uncovered. Forbes denies any involvement in the deceptive accounting practices. He will recieve a severance package worth more than $35 million. Cendant agreed not to sue Forbes, provided he is not found to have been involved in any wrongdoing. Eight other board members also resigned from the company. Cendant is a direct marketer and franchiser that owns brands including Century 21 real estate, Avis car rentals, and Howard Johnson and Ramada Inn motels.
Comment:
Chairman Walter A. Forbes resigned.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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False profits for 3 years at Cendant
Article Abstract:
The Cendant Corp., which has reported to investors that over $640 million of previously reported pre-tax operating profits were fictional, completed a board-level investigation of systematic fraud of its accounting practices. The fraudulent profits will be stricken from company books for the years 1995, 1996 and 1997 before they are presented to the Securities and Exchange Commission. The company reported high profits for the first half of 1998, buoying investor confidence in the midst of the financial scandal.
Comment:
Has reported that over $640 million of previously reported pre-tax operating profits were fictional
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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