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Unable to sell its mortgage unit at a price it found acceptable, Cendant Corp. here has decided to spin-off the division to current shareholders in an offering scheduled for the first quarter.
But the shedding of Cendant Mortgage Corp., Mount Laurel, N.J., will not come cheaply.
Cendant Corp. chairman Henry Silverman said last week the parent company will infuse $200 million in capital into CMC.
The spin-off comes after Cendant unsuccessfully tried to sell CMC for an estimated $1.2 billion. It also comes about two weeks after CMC reportedly failed to sell $10 billion in bulk servicing rights in the secondary market.
The $200 million,...