Bally's Vicksburg is a riverboat casino and hotel in Vicksburg, Mississippi . It is owned and operated by Bally's Corporation . It has 25,000 square feet (2,300 m) of gaming space and 89 hotel rooms.
73-501: The project was initiated by the Rainbow Casino Corporation (RCC), made up of John A. Barrett and Leigh Seippel. Hospitality Franchise Systems agreed to provide $ 7.5 million in financing, and to franchise a hotel at the property under its Days Inn brand. Six Flags agreed to build a 10-acre theme park named Pennants. United Gaming (later known as Alliance Gaming, and then Bally Technologies) signed on to manage
146-473: A 1997 net income of $ 55.4 million when the true 1997 result was a net loss of $ 217.2 million. As these irregularities in the books of Cendant were discovered in early 1998, an audit committee set up by Cendant's Board of Directors launched an investigation and discovered that the former management team of CUC, including its top executives Walter Forbes and Kirk Shelton , had been fraudulently preparing false business statements for several years. When this report
219-643: A Car out of bankruptcy for $ 110 million plus $ 2.8 billion in assumed debt. The combination of Budget with Avis made Cendant the second-largest car rental company in the U.S. In 2004, Cendant began a series of moves to simplify its business and focus on its core areas of real estate and travel. As part of this strategy, several non-core businesses were sold or spun off. In June 2004, Cendant sold Jackson Hewitt for $ 638 million through an initial public offering. In January 2005, Cendant spun off its mortgage and fleet management businesses as PHH Corporation . The next month, Cendant sold its Wright Express division,
292-580: A better result. In addition to the extensive international evidence that auctions have not been popular for IPOs, there is no U.S. evidence to indicate that the Dutch auction fares any better than the traditional IPO in an unwelcoming market environment. A Dutch auction IPO by WhiteGlove Health, Inc., announced in May 2011 was postponed in September of that year, after several failed attempts to price. An article in
365-455: A company is listed, it is able to issue additional common shares in a number of different ways, one of which is the follow-on offering . This method provides capital for various corporate purposes through the issuance of equity (see stock dilution ) without incurring any debt. This ability to quickly raise potentially large amounts of capital from the marketplace is a key reason many companies seek to go public. An IPO accords several benefits to
438-514: A disastrous merger with CUC International , a direct marketing company that operated discount membership programs like Shoppers Advantage and Travelers Advantage. HFS and CUC combined in a "merger of equals" on December 18, 1997, to form Cendant Corporation. As part of the merger, Silverman announced he would reduce his day-to-day involvement with the company and assume the company's chairmanship in preference of CUC's founder and CEO Walter Forbes . In January 1998, Cendant purchased Jackson Hewitt ,
511-486: A federal grand jury and sued by the Securities and Exchange Commission, which accused the company of directing the massive accounting fraud that ultimately cost the company and its investors billions of dollars. Shelton served 8 of his 10-year prison sentence before being released early for exemplary behavior. Former CEO Walter Forbes was sentenced to 12 years in prison in 2007. Under Silverman, Cendant bounced back from
584-421: A firm's stock of patents mitigates this effect. A Dutch auction allows shares of an initial public offering to be allocated based only on price aggressiveness, with all successful bidders paying the same price per share. One version of the Dutch auction is OpenIPO , which is based on an auction system designed by economist William Vickrey . This auction method ranks bids from highest to lowest, then accepts
657-452: A franchised chain of tax preparation offices, for $ 480 million. Just months after the merger, in April 1998 Cendant uncovered massive accounting improprieties at CUC which resulted in one of the largest financial scandals of the 1990s. At the time, Vice Chairman E. Kirk Shelton was reported to have inflated the company's revenue by $ 500 million over a period of three years. He had reported
730-402: A franchised chain of brokerages, from MetLife for $ 200 million. The company changed its name to HFS Inc. the same month, to reflect its broadened scope. This was followed the next year with the acquisition of Electronic Realty Associates for $ 37 million, and Coldwell Banker for $ 740 million, making HFS the largest franchisor of real estate brokerages in the U.S. In 1996, HFS acquired
803-467: A preliminary prospectus, known as a red herring prospectus , during the initial quiet period. The red herring prospectus is so named because of a bold red warning statement printed on its front cover. The warning states that the offering information is incomplete, and may be changed. The actual wording can vary, although most roughly follow the format exhibited on the Facebook IPO red herring. During
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#1732794142631876-414: A provider of fleet cards , for $ 1.03 billion through an initial public offering. In October 2005, Cendant sold its marketing services division, including its membership shopping programs, to Affinion Group , a vehicle of Apollo Management , for $ 1.8 billion. Meanwhile, proceeds from these sales were used for acquisitions to expand Cendant's core businesses. In November 2004, Cendant purchased Orbitz ,
949-537: A sale was finally made to Isle of Capri Casinos for $ 80 million. Isle of Capri rebranded the property under its Lady Luck name in November 2012. In March 2018, Eldorado Resorts (which had acquired Isle of Capri Casinos in 2017) agreed to sell the property to Churchill Downs Inc. , owner of the neighboring Riverwalk Casino, for $ 51 million. The sale was canceled, however, as a result of inquiries from antitrust regulators . In July 2019, Eldorado agreed instead to sell
1022-537: A shared fleet of cars, and have the same "back end" system, but operate at different locations, offer different service levels, and have somewhat different pricing. After the Cendant name was dissolved, the car rental segment became known as Avis Budget Group and currently trades on the NASDAQ stock exchange under the ticker symbol CAR. These brands were spun off into Wyndham Worldwide . These companies are now under
1095-487: Is theglobe.com IPO which helped fuel the IPO "mania" of the late 1990s internet era. Underwritten by Bear Stearns on 13 November 1998, the IPO was priced at $ 9 per share. The share price quickly increased 1,000% on the opening day of trading, to a high of $ 97. Selling pressure from institutional flipping eventually drove the stock back down, and it closed the day at $ 63. Although the company did raise about $ 30 million from
1168-545: Is an expensive process, IPOs also typically involve one or more law firms with major practices in securities law , such as the Magic Circle firms of London and the white-shoe firms of New York City. Financial historians Richard Sylla and Robert E. Wright have shown that before 1860 most early U.S. corporations sold shares in themselves directly to the public without the aid of intermediaries like investment banks. The direct public offering (DPO), as they term it,
1241-451: Is low enough to stimulate interest in the stock but high enough to raise an adequate amount of capital for the company. When pricing an IPO, underwriters use a variety of key performance indicators and non-GAAP measures. The process of determining an optimal price usually involves the underwriters ("syndicate") arranging share purchase commitments from leading institutional investors. Some researchers (Friesen & Swift, 2009) believe that
1314-465: Is possible that the financial incentives of the advisor and client may not be aligned. The issuer usually allows the underwriters an option to increase the size of the offering by up to 15% under a specific circumstance known as the greenshoe or overallotment option. This option is always exercised when the offering is considered a "hot" issue, by virtue of being oversubscribed. In the US, clients are given
1387-399: Is to generate additional interest in the stock and a rapid rise in share price when it first becomes publicly traded (known as an "IPO pop"). Flipping , or quickly selling shares for a profit , can lead to significant gains for investors who were allocated shares of the IPO at the offering price. However, underpricing an IPO results in lost potential capital for the issuer. One extreme example
1460-582: Is typically underwritten by one or more investment banks , who also arrange for the shares to be listed on one or more stock exchanges . Through this process, colloquially known as floating , or going public , a privately held company is transformed into a public company . Initial public offerings can be used to raise new equity capital for companies, to monetize the investments of private shareholders such as company founders or private equity investors, and to enable easy trading of existing holdings or future capital raising by becoming publicly traded. After
1533-452: Is usually underwritten by a " syndicate " of investment banks, the largest of which take the position of "lead underwriter". Upon selling the shares, the underwriters retain a portion of the proceeds as their fee. This fee is called an underwriting spread . The spread is calculated as a discount from the price of the shares sold (called the gross spread ). Components of an underwriting spread in an initial public offering (IPO) typically include
SECTION 20
#17327941426311606-791: The Avis car rental company for $ 793 million. In keeping with HFS's strategy of being primarily a franchisor, it kept ownership of the Avis brand name and reservations system, while selling off the operations of Avis's corporate-owned locations as a new company, Avis Rent a Car, Inc. HFS also bought Resort Condominiums International , a timeshare exchange service, for up to $ 825 million. In 1997, HFS acquired PHH Corp. for $ 1.8 billion. PHH's businesses of mortgage brokerage , relocation services , and fleet management were expected to synergize with HFS's real estate and car rental businesses. However, later that year, Silverman led HFS into what would prove
1679-562: The Realogy banner. These companies are now under the Affinion Group banner. These brands were separated into a new company called Travelport . These companies are owned by Wyndham Worldwide. Initial public offering An initial public offering ( IPO ) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO
1752-506: The publicani were legal bodies independent of their members whose ownership was divided into shares, or partes . There is evidence that these shares were sold to public investors and traded in a type of over-the-counter market in the Forum , near the Temple of Castor and Pollux . The shares fluctuated in value, encouraging the activity of speculators, or quaestors . Mere evidence remains of
1825-573: The 61-hotel Park Inn brand. The company made a brief foray into the casino industry, but then spun off that business in November 1994 as National Gaming . In 1995, HFS launched a new hotel brand, Wingate Inn . After company management found that they had mostly exhausted the field of desirable acquisition targets in the hotel industry, Hospitality Franchise Systems expanded into the real estate business. Silverman hoped that HFS's skills at franchise management would bring success in fields outside of hospitality. In August 1995, it acquired Century 21 ,
1898-507: The Dutch auction is still a little used method in U.S. public offerings, although there have been hundreds of auction IPOs in other countries. In determining the success or failure of a Dutch auction, one must consider competing objectives. If the objective is to reduce risk, a traditional IPO may be more effective because the underwriter manages the process, rather than leaving the outcome in part to random chance in terms of who chooses to bid or what strategy each bidder chooses to follow. From
1971-407: The Dutch auction system for its initial public offering. Traditional U.S. investment banks have shown resistance to the idea of using an auction process to engage in public securities offerings. The auction method allows for equal access to the allocation of shares and eliminates the favorable treatment accorded important clients by the underwriters in conventional IPOs. In the face of this resistance,
2044-473: The IPO are restricted from issuing any earnings forecasts or research reports for the company. When the quiet period is over, generally the underwriters will initiate research coverage on the firm. A three-day waiting period exists for any member that has acted as a manager or co-manager in a secondary offering. Not all IPOs are eligible for delivery settlement through the DTC system , which would then either require
2117-509: The IPO, shares are traded freely in the open market at what is known as the free float. Stock exchanges stipulate a minimum free float both in absolute terms (the total value as determined by the share price multiplied by the number of shares sold to the public) and as a proportion of the total share capital (i.e., the number of shares sold to the public divided by the total shares outstanding). Although IPO offers many benefits, there are also significant costs involved, chiefly those associated with
2190-504: The Wall Street Journal cited the reasons as "broader stock-market volatility and uncertainty about the global economy have made investors wary of investing in new stocks". Under American securities law, there are two-time windows commonly referred to as "quiet periods" during an IPO's history. The first and the one linked above is the period of time following the filing of the company's S-1 but before SEC staff declare
2263-613: The accounting scandal far outperforming the markets in the early 2000s. Following the fraud debacle, Cendant began selling businesses to reduce its debt and repair the financial damage caused by the accounting scandal. In 1998 the company sold Hebdo Mag , a publisher of classified advertising publications, for $ 450 million to a management buyout group. In 1999 it sold its consumer software division, Cendant Software (consisting of Blizzard Entertainment , Davidson & Associates , Knowledge Adventure , and Sierra On-Line ), to French publisher Havas for $ 770 million. By 2001, Cendant
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2336-408: The assumption of independent private values (that the value of IPO shares to each bidder is entirely independent of their value to others, even though the shares will shortly be traded on the aftermarket). Theory that incorporates assumptions more appropriate to IPOs does not find that sealed bid auctions are an effective form of price discovery, although possibly some modified form of auction might give
2409-422: The capital to its public investors. Those investors must endure the unpredictable nature of the open market to price and trade their shares. After the IPO, when shares are traded in the market, money passes between public investors. For early private investors who choose to sell shares as part of the IPO process, the IPO represents an opportunity to monetize their investment. After the IPO, once shares are traded in
2482-420: The casino. The Rainbow Casino opened on July 12, 1994, with 574 slot machines and 28 table games. United Gaming took a 45 percent ownership stake on the day it opened. It took a controlling stake the following year, after RCC failed to finance elements of the casino that it was responsible for. The hotel, owned by AmeriHost , opened in May 1995, and the company called it "the most upscale Days Inn anywhere". It
2555-407: The company (primary offering) as well as to any early private investors who opt to sell all or a portion of their holdings (secondary offerings) as part of the larger IPO. An IPO, therefore, allows a company to tap into a wide pool of potential investors to provide itself with capital for future growth, repayment of the debt, or working capital. A company selling common shares is never required to repay
2628-457: The company bought the Wyndham hotel brand from Blackstone for $ 111 million. On October 23, 2005, Cendant's strategy of simplification culminated in the announcement that it would split into four separate companies, focused respectively on hotels, real estate, travel services, and rental cars. Silverman said the breakup would improve shareholder value by allowing the market to better recognize
2701-442: The concession, while the member of the syndicate who provided the shares to that broker-dealer would retain the underwriting fee. Usually, the managing/lead underwriter, also known as the bookrunner , typically the underwriter selling the largest proportions of the IPO, takes the highest portion of the gross spread , up to 8% in some cases. Multinational IPOs may have many syndicates to deal with differing legal requirements in both
2774-451: The final IPO prospectus is for the issuer to retain one of the major financial "printers", who print (and today, also electronically file with the SEC ) the registration statement on Form S-1. Typically, preparation of the final prospectus is actually performed at the printer, wherein one of their multiple conference rooms the issuer, issuer's counsel (attorneys), underwriter's counsel (attorneys),
2847-468: The following (on a per-share basis): Manager's fee, Underwriting fee—earned by members of the syndicate, and the Concession—earned by the broker-dealer selling the shares. The Manager would be entitled to the entire underwriting spread. A member of the syndicate is entitled to the underwriting fee and the concession. A broker-dealer who is not a member of the syndicate but sells shares would receive only
2920-421: The highest bids that allow all shares to be sold, with all winning bidders paying the same price. It is similar to the model used to auction Treasury bills , notes, and bonds since the 1990s. Before this, Treasury bills were auctioned through a discriminatory or pay-what-you-bid auction, in which the various winning bidders each paid the price (or yield) they bid, and thus the various winning bidders did not all pay
2993-458: The issued shares, the stock may fall in value on the first day of trading. If so, the stock may lose its marketability and hence even more of its value. This could result in losses for investors, many of whom being the most favored clients of the underwriters. Perhaps the best-known example of this is the Facebook IPO in 2012. Underwriters, therefore, take many factors into consideration when pricing an IPO, and attempt to reach an offering price that
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3066-425: The issuer's domestic market and other regions. For example, an issuer based in the E.U. may be represented by the major selling syndicate in its domestic market, Europe, in addition to separate group corporations or selling them for US/Canada and Asia. Usually, the lead underwriter in the head selling group is also the lead bank in the other selling groups. Because of the wide array of legal requirements and because it
3139-482: The largest hotel franchisor in the world, with its brands licensed to 2,300 hotels. Blackstone took Hospitality Franchise Systems public in a December 1992 IPO . HFS was among the fastest growing companies of its size in the 1990s and the company's stock rose from its IPO price of $ 4 per share to $ 77 per share in 1998. In 1993, HFS purchased the Super 8 brand, franchised to 1,000 motels, for $ 125 million, and bought
3212-609: The lead underwriter(s), and the issuer's accountants/auditors make final edits and proofreading, concluding with the filing of the final prospectus by the financial printer with the Securities and Exchange Commission. Before legal actions initiated by New York Attorney General Eliot Spitzer , which later became known as the Global Settlement enforcement agreement, some large investment firms had initiated favorable research coverage of companies in an effort to aid corporate finance departments and retail divisions engaged in
3285-426: The listing regime. Planning is crucial to a successful IPO. One book suggests the following seven planning steps: IPOs generally involve one or more investment banks known as " underwriters ". The company offering its shares, called the "issuer", enters into a contract with a lead underwriter to sell its shares to the public. The underwriter then approaches investors with offers to sell those shares. A large IPO
3358-583: The marketing of new issues. The central issue in that enforcement agreement had been judged in court previously. It involved the conflict of interest between the investment banking and analysis departments of ten of the largest investment firms in the United States. The investment firms involved in the settlement had all engaged in actions and practices that had allowed the inappropriate influence of their research analysts by their investment bankers seeking lucrative fees. A typical violation addressed by
3431-427: The offering, it is estimated that with the level of demand for the offering and the volume of trading that took place they might have left upwards of $ 200 million on the table. The danger of overpricing is also an important consideration. If a stock is offered to the public at a higher price than the market will pay, the underwriters may have trouble meeting their commitments to sell shares. Even if they sell all of
3504-405: The open market, investors holding large blocks of shares can either sell those shares piecemeal in the open market or sell a large block of shares directly to the public, at a fixed price , through a secondary market offering . This type of offering is not dilutive since no new shares are being created. Stock prices can change dramatically during a company's first days in the public market. Once
3577-401: The physical delivery of the stock certificates to the clearing agent bank's custodian or a delivery versus payment (DVP) arrangement with the selling group firm. "Stag profit" is a situation in the stock market before and immediately after a company's initial public offering (or any new issue of shares). A "stag" is a party or individual who subscribes to the new issue expecting the price of
3650-686: The previously private company: There are several disadvantages to completing an initial public offering: IPO procedures are governed by different laws in different countries. In the United States, IPOs are regulated by the United States Securities and Exchange Commission under the Securities Act of 1933 . In the United Kingdom, the UK Listing Authority reviews and approves prospectuses and operates
3723-545: The prices for which partes were sold, the nature of initial public offerings, or a description of stock market behavior. Publicani lost favor with the fall of the Republic and the rise of the Empire . In the United States, the first IPO was the public offering of Bank of North America around 1783. When a company becomes publicly listed, the money paid by the investing public for the newly issued shares goes directly to
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#17327941426313796-465: The process such as banking and legal fees, and the ongoing requirement to disclose important and sometimes sensitive information. Details of the proposed offering are disclosed to potential purchasers in the form of a lengthy document known as a prospectus . Most companies undertake an IPO with the assistance of an investment banking firm acting in the capacity of an underwriter. Underwriters provide several services, including help with correctly assessing
3869-1097: The property to Twin River Worldwide Holdings , along with the Isle of Capri Casino Kansas City , for a total of $ 230 million. The deal was made to help finance Eldorado's pending acquisition of Caesars Entertainment . The sale to Twin River closed in July 2020, and the property was renamed as Casino Vicksburg. Twin River then purchased the Bally's casino brand from Caesars Entertainment , changed its own name to Bally's Corporation, and announced plans to rebrand most of its casinos. As part of this rebranding, Casino Vicksburg became Bally's Vicksburg in August 2021. 32°17′40″N 90°54′53″W / 32.294313°N 90.914736°W / 32.294313; -90.914736 Hospitality Franchise Systems Cendant Corporation
3942-522: The quiet period, the shares cannot be offered for sale. Brokers can, however, take indications of interest from their clients. At the time of the stock launch, after the Registration Statement has become effective, indications of interest can be converted to buy orders, at the discretion of the buyer. Sales can only be made through a final prospectus cleared by the Securities and Exchange Commission. The final step in preparing and filing
4015-413: The registration statement effective. During this time, issuers, company insiders, analysts, and other parties are legally restricted in their ability to discuss or promote the upcoming IPO (U.S. Securities and Exchange Commission, 2005). The other "quiet period" refers to a period of 10 calendar days following an IPO's first day of public trading. During this time, insiders and any underwriters involved in
4088-549: The same price. Both discriminatory and uniform price or "Dutch" auctions have been used for IPOs in many countries, although only uniform price auctions have been used so far in the US. Large IPO auctions include Japan Tobacco, Singapore Telecom, BAA Plc and Google (ordered by size of proceeds). A variation of the Dutch auction has been used to take a number of U.S. companies public including Morningstar , Interactive Brokers Group , Overstock.com , Ravenswood Winery, Clean Energy Fuels, and Boston Beer Company . In 2004, Google used
4161-476: The settlement was the case of CSFB and Salomon Smith Barney , which were alleged to have engaged in the inappropriate spinning of "hot" IPOs and issued fraudulent research reports in violation of various sections within the Securities Exchange Act of 1934 . A company planning an IPO typically appoints a lead manager, known as a bookrunner , to help it arrive at an appropriate price at which
4234-414: The shares should be offered. There are two primary ways in which the price of an IPO can be determined. Either the company, with the help of its lead managers, fixes a price ("fixed price method"), or the price can be determined through analysis of confidential investor demand data compiled by the bookrunner (" book building "). Historically, many IPOs have been underpriced. The effect of underpricing an IPO
4307-528: The site for $ 500,000 and adapted its main building for use as a concert venue. A casino expansion was completed in 1999, increasing the number of slot machines from 725 to over 1,000. In 1999, United Gaming put the property, along with its other casino in Nevada, on the market, to help pay down corporate debts, but no satisfactory offers were received. Bally put the Rainbow back on the market in 2006. In 2010,
4380-419: The stock to rise immediately upon the start of trading. Thus, stag profit is the financial gain accumulated by the party or individual resulting from the value of the shares rising. This term is more popular in the United Kingdom than in the United States. In the US, such investors are usually called flippers, because they get shares in the offering and then immediately turn around " flipping " or selling them on
4453-594: The third-largest travel booking site in the U.S., for $ 1.2 billion. In December 2004, Cendant consolidated its control of the Ramada name by buying out Marriott International 's stake in the hotel brand. In February 2005, Cendant acquired Ebookers , the second-largest travel booking site in Europe, for $ 350 million. In April 2005, Cendant acquired Gullivers Travel Associates, a British seller of travel packages and wholesale hotel nights, for $ 1.1 billion. In October 2005,
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#17327941426314526-447: The underpricing of IPOs is less a deliberate act on the part of issuers and/or underwriters, and more the result of an over-reaction on the part of investors (Friesen & Swift, 2009). One potential method for determining to underprice is through the use of IPO underpricing algorithms . Other researchers have discovered that firms with higher revenues from licensing-based technology commercialization exhibit greater IPO underpricing, while
4599-399: The underwriters. A licensed securities salesperson ( Registered Representative in the US and Canada) selling shares of a public offering to his clients is paid a portion of the selling concession (the fee paid by the issuer to the underwriter) rather than by his client. In some situations, when the IPO is not a "hot" issue (undersubscribed), and where the salesperson is the client's advisor, it
4672-474: The value of Cendant's component businesses. Cendant originally planned to spin off its travel services division to shareholders as a company named Travelport , but on June 30, 2006, Cendant announced it would sell Travelport to Blackstone for $ 4.3 billion. On July 31, 2006, Cendant's real estate and hotel divisions were spun off and became separate companies under the names Realogy and Wyndham Worldwide , respectively. The sale of Travelport to Blackstone
4745-528: The value of shares (share price) and establishing a public market for shares (initial sale). Alternative methods such as the Dutch auction have also been explored and applied for several IPOs. The earliest form of a company which issued public shares was the case of the publicani during the Roman Republic , although this claim is not shared by all modern scholars. Like modern joint-stock companies,
4818-405: The viewpoint of the investor, the Dutch auction allows everyone equal access. Moreover, some forms of the Dutch auction allow the underwriter to be more active in coordinating bids and even communicating general auction trends to some bidders during the bidding period. Some have also argued that a uniform price auction is more effective at price discovery , although the theory behind this is based on
4891-447: Was again in acquisition mode. It re-acquired the operations of Avis Rent a Car for $ 937 million. It made moves towards building a major online travel portal by acquiring Galileo International for $ 2.9 billion, and Cheap Tickets for $ 425 million. It entered the timeshare sales and management business by buying Fairfield Communities for $ 690 million, and Trendwest Resorts for $ 980 million. In 2002, Cendant bought Budget Rent
4964-541: Was an American provider of business and consumer services, primarily within the real estate and travel industries. In 2005 and 2006, it broke up and spun off or sold its constituent businesses. Although it was based in New York City , the majority of its headquarters employees were in Parsippany-Troy Hills, New Jersey . Its last CEO was Henry Silverman . Hospitality Franchise Systems Inc. (HFS)
5037-452: Was completed on August 23, 2006. This left Cendant with only its car rental business, comprising Avis, Budget Rent a Car, and Budget Truck Rental . The company retired the Cendant name and renamed itself to Avis Budget Group on September 1, 2006. Cendant owned the rental brands of Avis and Budget , holding these properties in the CCRG (Cendant Car Rental Group). Avis and Budget operate
5110-616: Was created as an affiliate of the Blackstone Group , a private equity firm, as a vehicle to acquire hotel franchises. It was led by Henry Silverman , a Blackstone partner and former CEO of Days Inn . It began in 1990 by buying Howard Johnson's and the U.S. rights to the Ramada brand from Prime Motor Inns for $ 170 million. In 1992, HFS bought the Days Inn franchise out of bankruptcy for $ 290 million. This purchase made HFS
5183-513: Was not done by auction but rather at a share price set by the issuing corporation. In this sense, it is the same as the fixed price public offers that were the traditional IPO method in most non-US countries in the early 1990s. The DPO eliminated the agency problem associated with offerings intermediated by investment banks. The sale (allocation and pricing) of shares in an IPO may take several forms. Common methods include: Public offerings are sold to both institutional investors and retail clients of
5256-450: Was rebranded as an AmeriHost Inn by 2000, and in 2002 it was sold to AmeriHost's former chairman, Michael P. Holtz. The theme park, renamed as Funtricity Entertainment Park, also opened in May 1995. Six Flags designed it as the flagship in a new chain of entertainment centers, targeted at markets too small to support a full-size park; within two years, though, the concept was reportedly put on hold. The park closed in 1998, and Alliance bought
5329-514: Was released to the public, the resulting damage to the market value for the company was approximately $ 14 billion, with their stock tumbling from a high of $ 41 down to nearly $ 12. At the time, this fiasco was the largest case of accounting fraud in the country's history. After the accounting scandal was uncovered, Silverman and the Cendant board forced Forbes’ resignation and Silverman assumed the CEO post. In March 2001, Forbes and Shelton were indicted by
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