Cendant Selling Off Businesses

Cendant Corp. said it will sell its consumer software business, which includes Sierra On-Line Inc., and has agreed to sell its Internet publishing unit for about $510 million in cash and stock. Cendant, whose brands include Howard Johnson hotels and Century 21 real estate brokerages, is trying to gain investor confidence after announcing that accounting fraud would force it to restate earnings for the last three years. The Parsippany, N.J.-based company said it hired Credit Suisse First Boston to sell its software group, one of the world’s largest makers of personal computer programs for consumers, in an initial 100% public offering or to a third party. In addition, Cendant said the managers of its Hebdo Mag International publishing unit will pay 7 million shares of Cendant stock and $410 million in cash for their company, which distributes classified advertising information in 14 countries. Investors applauded the plans, driving Cendant’s stock up 14%, or $1.94, to close at $16.06 on the New York Stock Exchange.