Cendant to Spin Off Jackson Hewitt Unit
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Cendant Corp. plans to spin off its Jackson Hewitt tax-preparation unit next quarter, raising as much as $100 million in an initial public offering.
The price and number of shares to be offered haven’t yet been determined, Cendant said in a filing with the Securities and Exchange Commission on Monday. Jackson Hewitt is the second-largest U.S. tax-preparation company, after H&R; Block Inc.
Sales at New York-based Cendant’s real estate operations, which include Coldwell Banker and Century 21, have increased as low interest rates encouraged more people to buy homes. Revenue at the company’s financial-services businesses has been flat.
Jackson Hewitt is “deemed by all outsiders as noncore, nonstrategic,” said James Wilson, an analyst at JMP Securities in San Francisco.
Cendant shares fell 46 cents to $22.76 on the New York Stock Exchange. The company’s other businesses include the Days Inn and Howard Johnson hotel chains and Avis and Budget car rental businesses.
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