Cendant Wins AB Bidding War.

National Underwriter Property & Casualty-Risk & Benefits Management, March, 1998 by SCLAFANE, SUSANNE

It took Cendant Corp. $3.1 billion to outbid American International Group in a two-month battle to own American Bankers Ins. Group, but experts say there's an equally tough road ahead for the non-insurer as it enters a specialized segment of the insurance business. Considering the high price Cendant bad to put up for the Miami, Fla.-based credit insurer--and the possibility of continued competition from rival AIC--Cendant has its work cut out for it, analysts say.

"They have to hit on all eight cylinders" to make it worth the price, said Ken Zuckerberg, vice president and senior analyst for Moody's Investors Service in New York. "The fact that they paid four times hook value certainly makes it a rich acquisition price," he said. "For Cendant to pay that...

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