Friday, July 28, 2006

A billion here a billion there and pretty soon your talking Cendant

Finally accounting confirmation of what we all knew - you can't turn 7 into 4.3 without impacting the bottom line. Cendant has taken a charge of more than a billion dollars (US) to reflect the difference in the book value of the Travelport assets (the sum of the acquisition prices less any earlier adjustments such as the write-down of ebookers) and the sale price to Blackstone. The good news is that Travelport is now clear of all of that baggage and can focus on growing the business in anticipation of likely breakup by Blackstone. The bad news is that this is the last we will ever hear of more than $2.7bil in wasted shareholder money and missed opportunity. It will become nothing more than a footnote in US corporate history (and an under-read blog post here).


MikeyP said...

Well, I read your blog Tim, and have to hope as well that the Cendant mess gets sorted out now. Funny though that even those inside the ex-Cendant travel organisation A.K.A. Travelport that I know still can´t quite understand the corporate structure.

Tim Hughes said...

I hear the same story as well. There are some fantastic people inside Travelport but I fear that clarity will only come on structure once Travelport is broken up again by Blackstone.