Cendant's Star Sure Isn't Rising

DEALMAKER HENRY SILVERMAN may have gotten less than he bargained for. On Apr. 15, Cendant, created last year through the merger of Silverman's franchise giant HFS and direct marketer CUC International, announced that it had uncovered potential accounting irregularities in certain former CUC business units. The bottom line: Cendant's 1997 net income is expected to be reduced by as much as $115 million. Silverman said in a prepared statement: "We're outraged by the actions of a small number of former CUC employees who betrayed the trust placed in them by the company and our fellow shareholders."

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