Cendant cites wider accounting fraud

Article Abstract:

Cendant Corp. acknowledged that a broader range of accounting fraud took place at the company than what was initially believed. The fraud involved widespread booking of false revenue and other deceitful practices as well. The false revenue is estimated at $300 million. The company had recorded the revenue in order to meet the expectations of Wall Street analysts. In addition, Cendant revealed that it found revenue that was claimed in the short term but that should have been recorded at a later time.

Comment:

Acknowledged that a broader range of accounting fraud took place at the company than what was initially believed

Financial management

American Bankers' shares drop 8.6% on speculation Cendant may back out

Article Abstract:

American Bankers Insurance Group Inc.'s (ABIG) stocks dropped 8.6% in value in late September 1998 to $41.75 on the New York Stock Exchange. The company's shares fell as a result of reports that Cendant Corp. was planning to terminate its deal to acquire ABIG for approximately $3.1 billion. Cendant's CEO, Henry R. Silverman, said that the proposed deal still required regulatory approval in Florida. This led some to believe Cendant would have problems in winning regulatory approval.

Comment:

ABIG's share value drops 8.6% as reports say Cendant is considering withdrawing from deal to acquire ABIG

Asset sales & divestitures, Acquisitions & mergers, Insurance, Insurance Carriers and Related Activities, Securities prices, American Bankers Insurance Group Inc.

Cendant Profit tops forecasts; '97 is restated

Article Abstract:

Franchising and marketing concern Cendant Corp. reported healthy results for the second quarter, although accounting errors that will necessitate an operating earnings correction downward by $ 0.28 per share, or approximately $240 million. The company had second-quarter net income of $210.9 million despite being besieged by accounting fraud and management turmoil. The company said that it had located around $500 million in bogus revenue and $200 million in accounting "errors".

Comment:

Reported healthy results for 2d-qtrr, although accounting errors will bring it down

Sales, profits & dividends