Industry News

Cendant completes spin-off of mortgage arm

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Cendant has completed the spin-off of its mortgage and fleet management business by distributing 100 percent of its previously wholly-owned subsidiary PHH Corp., to its stockholders, the company said Monday. In addition, Cendant announced it has entered into a mortgage venture with PHH, which Cendant expects to be operational in mid-2005. The venture will originate mortgage loans for customers of Cendant's real estate brokerage and relocation businesses. Cendant distributed one share of PHH common stock for every 20 shares of Cendant common stock outstanding as of Jan. 19. Cash will be issued in lieu of fractional shares. The distribution was structured to qualify as a tax-free stock dividend to Cendant stockholders for income tax purposes, although cash received instead of fractional shares will be taxable. The distribution resulted in the issuance of approximately 52.7 million shares of PHH common stock. PHH common stock is expected to begin regular-way trading on the New York ...