Cendant in Talks to Buy Galileo International

Hotel and rental car giant Cendant Corp. is in negotiations to buy travel reservation firm Galileo International Inc., the companies announced.

The terms of the purchase were not disclosed, and both companies warned the deal could fall apart.

The Wall Street Journal reported that the companies were considering a cash and stock deal valued at about $3 billion.

The deal would value Galileo at about $34 a share, more than double the stock’s trading price in October when Galileo announced it was putting itself up for sale, the Journal said, citing unidentified sources close to the talks.

Shares of New York-based Cendant closed down 39 cents at $18.09, and Rosemont, Ill.-based Galileo closed up 52 cents at $30.02, both on the New York Stock Exchange.