THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Tuesday, October 8, 1996 TAG: 9610080292
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
LENGTH: 44 lines
HFS Inc. agreed to buy closely held Resort Condominiums International Inc. for about $625 million in cash and stock, plus as much as $200 million in payments over five years. The purchase widens HFS's real estate holdings and expands its computer networks for reserving cars and hotel rooms to scheduling time share vacations. HFS has spent $2.4 billion since August 1995 to buy real estate brokers Coldwell Banker and Century 21, and car rental company Avis Inc. Resort Condominiums' computerized vacation exchange system can be linked with HFS's other computer networks, such as car rental company Avis Inc.'s WizCom system, investors said. The move will permit HFS to sell all its products via one computer system and boost HFS's profits, investors said. RCI chairman Christel DeHaan will join HFS' board. (Bloomberg)
Greenspan urges caution in financing national debt
The Clinton administration and Congress must be extremely cautious in taking actions that could inadvertently drive up the cost of financing the $5.1 trillion national debt, Federal Reserve Chairman Alan Greenspan warned Monday night. ``If the government makes purchasing its debt harder, by imposing onerous reporting or bookkeeping requirements, or riskier, by following capricious macroeconomic policies, buyers will pull back and the cost of servicing the debt will rise,'' Greenspan said. Greenspan, in remarks prepared for the Public Securities Association, never mentioned last winter's battle between Congress and the administration over increasing the national debt limit. (AP)
Computer Associates to buy Cheyenne
Computer Associates International Inc. agreed to buy Cheyenne Software Inc. for $30.50 a share, or about $1.19 billion, in cash to broaden its product line in computer network software. Cheyenne shares rose 34 percent, or 7 5/8, to 30 on the news in midmorning trading of 7.48 million. Cheyenne, based in Roslyn Heights, N.Y., makes storage, communications and security software for corporate networks. Computer Associates, the third biggest software company, specializes in writing software to manage the performance of mainframe computers and complex corporate networks. Cheyenne has about 38.9 million shares outstanding. (Bloomberg) by CNB