Cendant to Buy RAC Motoring in Cash Deal

Cendant Corp. extended its push into the British market by agreeing to pay $750 million for RAC Motoring Services, Britain’s second-biggest roadside assistance service. The purchase would give Parsippany, N.Y.-based Cendant, a direct marketing company, more customers for cross-selling of products. It would also include a breakdown-insurance unit and BSM Group, Britain’s largest driving school. The cash acquisition--which still needs to be approved by at least 75% of the 12,000 voting members of the Royal Automobile Club--would be a departure for Cendant, which experienced a 46% drop in share price on April 16, following its reporting of accounting irregularities. RAC had $500 million in sales last year. Cendant shares fell 38 cents to $24.69 on the New York Stock Exchange.