Cendant and American Bankers Insurance Group Terminate Merger Agreement

Cendant Corp. and American Bankers Insurance Group Inc. announced the mutual decision to terminate their merger agreement, which would have seen Cendant acquire American Bankers. In conjunction with the termination, Cendant and American Bankers released each other from any claims related to the proposed acquisition and Cendant made a $400 million cash payment to American Bankers. The termination of the merger agreement resulted in Cendant ending its pending tender offer for American Bankers shares. Cendant, the world's premier provider of consumer and business services, operates in three segments: Alliance Marketing, Travel and Real Estate Services.

Key Takeaways:

• Cendant Corp. and American Bankers Insurance Group Inc. terminated their merger agreement, which provided for Cendant's acquisition of American Bankers.
• The termination resulted in Cendant making a $400 million cash payment to American Bankers.
• Cendant released American Bankers from any claims related to the proposed acquisition.
• The merger agreement's termination led to Cendant ending its pending tender offer for American Bankers shares.
• Cendant, with operations in over 100 countries and nearly 40,000 employees, focuses on providing consumer and business services through three main segments: Alliance Marketing, Travel and Real Estate Services.
• American Bankers Insurance Group Inc. concentrates on marketing specialty insurance products and services through financial institutions and retailers.

Statistics:

• Cendant made a $400 million cash payment to American Bankers as part of the merger agreement's termination.
• Cendant operates in over 100 countries and has nearly 40,000 employees.
• Cendant makes more than 100 million customer contacts annually.
• American Bankers Insurance Group Inc. operates in the United States, Canada, the Caribbean, Latin America, and the United Kingdom.

Sources:

• Cendant Corp. (NYSE:CD) press release statement, October 13, 1998
• American Bankers Insurance Group Inc. (NYSE:ABI) press release statement, October 13, 1998
• Business Wire, October 13, 1998