Cendant to sell TDS

Cendant to sell TDS

Cendant will listen to offers for its Travel Distribution Services division, including the Galileo, EBookers, Guillivers and Orbitz brands, as part of a major overhaul of its structure.

The company, which also owns a string of residential real estate businesses, told investors yesterday that it had received a number of “indications of interest” to buy the TDS group and would therefore put the soon-to-be-renamed Travelport business up for sale.

Reports in the US suggest the company could stand to make a massive $4.5 billion from a sale of TDS.

Cendant revealed last autumn that it intended to spin off the TDS division into a separate business, but the move has put the travel industry on alert and already sparked intense debate as to likely suitors for the business.

Cendant chairman and chief executive, Henry Silverman, said “As a result of receiving a number of unsolicited indications of interest to acquire TDS, the company has decided to further explore other strategic alternatives for that business.

“The company’s decision to consider a sale in addition to pursuing the spin-off is due, in part, to the fact that a sale of TDS is not expected to result in a material tax liability, as would a sale of Cendant’s other divisions.”

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