Cendant to Purchase Fairfield Communities

Franchising giant Cendant Corp. said that it would buy time-share resort company Fairfield Communities Inc. for about $635 million in cash and stock to spur growth in its travel division. Fairfield, which operates 33 resorts in 12 states and the Bahamas, is the latest transaction in a recent flurry by the New York-based real estate, hotel and car rental franchiser. Chairman and Chief Executive Henry Silverman said Cendant expects to make a final bid by mid-November for the portion of car-rental chain Avis Group Holdings Inc. it doesn’t already own. The acquisition of Fairfield is expected to close in early 2001 and to immediately add to Cendant’s earnings, the companies said. Cendant shares rose 13 cents to close at $12.19, while Fairfield closed up 81 cents at $13.94, both on the NYSE.