NEW YORK (CNNfn) - Cendant Corp. said Thursday it will create a class of common stock to track the performance of its new online real estate site, CompleteHome.com, and plans an initial public offering for the unit in the second quarter of 2000.
Cendant, a global provider of consumer and business services including real estate, travel and taxes, said Thursday it will file with the Securities and Exchange Commission later this year and will begin reporting the earnings of CompleteHome.com in a footnote to the company's financial statements.
"Tracking" stocks normally pay dividends based on the operating performance of a particular segment of a company. Such a stock trades alongside a company's regular shares.
The move comes as Cendant continues to sell nonstrategic assets. The New York-based firm, which franchises real estate names like Coldwell Banker and Century 21 brokers, created a company two weeks ago to handle its online businesses.
Cendant also recently filed suit seeking $300 million in damages from a newly public Internet real estate service, Homestore.com Inc. (HOMS), alleging that the start-up failed to honor a commitment to issue Cendant some stock.
Former American Express executive Sarah Nolan was named CEO of the San Francisco-based CompleteHome.com. Most recently, Nolan worked for Hambrecht & Quist LLP (HQ) as president and chief executive of OptionsLink, the Web-based manager of employee stock options.
CompleteHome.com is expected to go live in December. The site will be a Web portal for real estate professionals and consumers, and will integrate the online efforts of Century 21, Coldwell Banker and Era as well as its real-estate business units Cendant Mobility and Cendant Mortgage.
Shares in the Cendant (CD) were up 3/16 at 17-9/16 at midday in New York.
-- from staff and wire reports