Cendant disclosure triggers meltdown

Article Abstract:

Cendant's stock dropped 3 3/16, 17%, to $15 11/16 on Jul. 14, 1998, following the company's announcement of accounting fraud at the company's CUC International unit. Likewise, the company's 1997 earnings would be reduced by twice as much as anticipated due to accounting fraud issue. The CUC controversy was confirmed by Henry Silverman, Cendant's CEO, who told company shareholders that auditors had discovered that CUC had posted fictitious revenue in December 1997 by utilizing creative, and likely unlawful, accounting.

Comment:

Its stock drops 3 3/16, 17%, to $15 11/16 on 7/14/98 following this co's announcement of accounting fraud at its CUC Intnl unit

Securities issued, listed, Lessors of Nonfinancial Intangible Assets (except Copyrighted Works), Franchising, Franchises, Avis Budget Group Inc., Article

---

Insurer inspires bidding battle

Article Abstract:

American International Group (AIG) has entered an all-out bidding war for american General with a $23-billion unsolicited offer. AIG is offering to pay $46 per American General share, or $23.1 billion overall, which is well above British insurer Prudential's offer of only $39.76 per share, or $20 billion overall. The fight could trigger continued consolidation in the financial services industry and a merger revival in industries decimated by the stock market's dramatic plunge in 2000.

Asset sales & divestitures, Insurance Carriers and Related Activities, Insurance, American International Group

---

Wall Street cuts back perks

Article Abstract:

Investment bankers are being asked to reduce expenditures related to the celebration of deal closings. These expenses, considered a tradition in Wall Street, can include all-expenses-paid weekends to the Caribbean as well as Lucite trophies that have come to symbolize big closings. The move was the result of a series of recent collapses in the sale of new stocks and bonds as well as a number of unsuccessful mergers.

Investment Banking and Securities Dealing, Investment Banking, Public affairs, Investment banks

Similar abstracts:

• Abstracts: Digital loss for quarter: $871 million. Digital forecasts quarterly operating loss. Digital, expecting a loss, ends up reporting a profit
• Abstracts: Cellular stocks lose attraction. Contel agrees to takeover offer by GTE. GTE to buy 14 cellular phone units
• Abstracts: Advice on a disk: the doctor is really in. Of facts and factoids
• Abstracts: Industry blames cheap foreign steel. Net sprouts new sites for car buyers. Entrepreneur sets financial sights on business Web site
• Abstracts: BCI venture buys Brazilian wireless firms. RBC nails new bank profit record. Microcell cutting Fido rates

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.