Cendant May Sell Travel Distribution Business

New York -- Cendant Corp. today said it may sell its travel distribution division rather than spin it off into a separate company this fall, as previously announced.

The primary assets of Cendant's Travel Distribution Services (TDS) consist of the Orbitz online travel agency; Galileo global distribution system; and Gullivers Travel Associates, a hotel marketing and reservations service.

"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," said Henry Silverman, Cendant's chairman and chief executive.

Silverman said that proceeds from a TDS sale would pay to reduce Cendant's corporate debt, which the other divisions that Cendant plans to spin off will incur once they become separate, publicly traded companies.

Those spin-offs are the real estate broker franchise business, into Realogy Corp.; and the hotel franchise business, into Wyndham Worldwide. Cendant plans to retain the rental car business and rename itself Budget Group Inc.

Cendant confirmed that the other spin-offs are scheduled to proceed as planned.