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Cendant files spin-off
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May 29, 2001: 6:39 p.m. ET
World's largest franchiser files to spin off membership & loyalty business
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NEW YORK (CNNfn) - Cendant Corp., the world's largest franchiser, filed its previously announced plans with regulators Tuesday to spin off its membership and loyalty business to shareholders by the fall.
New York-based Cendant (CD: down $0.12 to $18.75, Research, Estimates) filed a Form 10 with the Securities and Exchange Commission to distribute 100 percent of the new company to shareholders in a tax-free distribution. Cendant announced the spin-off last October.
The new company, which has not been named, will consist primarily of Cendant Membership Services, which is headquartered in Stamford, Conn., and Cendant Services of Richmond, Va., the company said last October.
Once completed, Cendant will retain the intellectual property of the business and license it for 50 years to the new company in exchange for royalty payments, the company said in a statement.
Cendant owns the brand names for such diverse franchises as Days Inn and Ramada hotels to Century 21 and Coldwell Banker real estate agencies. In November, Cendant bought the parts of Avis Group Holdings that it didn't already own for $935 million. 
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