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Report: Cendant to Buy Budget Group

August 21, 2002

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NEW YORK (AP) _ Cendant Corp. has agreed to buy Budget Group Inc. out of Chapter 11 bankruptcy for $107.5 million, a published report said.

In a story posted on its Web site early Wednesday morning, The Wall Street Journal, citing unidentified people familiar with deal, said New York-based Cendant also agreed to assume $2.7 billion in debt.

The paper said the deal is expected to be announced today.

Cendant, which owns car rental company Avis Holdings Inc., is also expected to cover nearly $100 million in operating liabilities Daytona Beach, Fla.-based Budget had before it filed for bankruptcy protection in July.

The paper said that Cendant is buying Budget’s operations in the United States, Canada, New Zealand and Latin America. Budget’s European, Middle Eastern and African units are not part of the deal.

If the deal is approved, it would make Cendant’s the nation’s second-biggest car rental company behind Enterprise Rent-a-Car Co.

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