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Liberty ups Cendant stake
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November 27, 2000: 6:41 p.m. ET
Media and technology firm bumps stake in hotel franchisor to 6.4 percent
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NEW YORK (CNNfn) - Liberty Media Corp. has increased its stake in Cendant Corp. to roughly 6.4 percent through a series of transactions that will leave it as one of the hotel and real estate office franchisor's largest shareholders, the companies confirmed Monday.
Liberty Media, the media and technology concern slated to be spun off from parent company AT&T Corp. (T: Research, Estimates) next Spring, has been working with Cendant since late last year to deliver broadband video, voice and data content to the company's numerous hotel chains. The companies are also developing Internet opportunities for Cendant's travel, mortgage, real estate and direct marketing businesses.
In February, Liberty Media (LMG.A: Research, Estimates) invested $400 million in cash in the New York-based owner of the Days Inn, Ramada, Howard Johnson, Century 21, Coldwell Banker and ERA brand names in exchange for 18 million Cendant shares, as well as a two-year warrant to purchase an additional 29 million shares at $23 each.
 Instead, the Englewood, Colo.-based company swapped those warrants on Nov. 16 for 2.3 million additional Cendant (CD: Research, Estimates) shares and purchased an additional 4.1 million shares from the company for $50 million, or $12.34 per share.
Earlier this month, Liberty Media also purchased 19.8 million shares of Cendant common stock from Lehman Brothers Inc. for approximately $206.7 million, or $10.44 per share. However, the company entered an agreement whereby it can sell the shares back to a Lehman affiliate on May 17, 2001 for the same per share price.
Cendant used Liberty Media's initial investment to help reduce its weighty debt load, but gave no indication Monday what the most recent proceeds would be directed towards. The company has reversed its efforts to trim down in recent months, acquiring Avis Group Holdings and resort operator Fairfield Communities in the last few weeks alone.
The transaction is Liberty Media's first significant purchases since AT&T announced plans to shed the unit, hoping to give acquisitive Liberty Media Chairman John Malone more access to capital and ability to do more deals.
Liberty Media shares gained 44 cents to $15.06 in trading Monday while Cendant shed 25 cents to $9.38. 
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