Cendant Corp., New York, has submitted a non-binding proposal to the board of directors at Avis Holdings Inc. for the 25.6 million outstanding shares of Avis not currently owned by Cendant. The company currently owns approximately 18% of the outstanding shares.
At the $29 per share price offered, the deal would be valued at approximately $750 million. At the start of yesterday, sale at that price might have been a good deal for stockholders: Shares in Avis were trading at 25 1/2. But the stock jumped $5 per share, closing at 30 1/2, indicating that shareholders feel the deal is undervalued.
Cendant markets real estate, travel, and direct marketing services.
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