Cendant engaged in a tax-free common stock exchange through majority stockholder JELD-WEN, who owned 81% of Trendwest, and additional stockholders. The source tells GlobeSt.com that Cendant issued 48.3 million shares at a 1:1.2973 ratio of Cendant to Trendwatch stock for the acquisition, based on Cendant market value at that time. "The deal was was determined to be in the best interests of both Trendwest and Cendant stockholders," a source close to the deal tell GlobeSt.com.

Cendant purchased Fairfield a year ago for $690 million. "We plan to maximize growth by maintaining both Fairfield and Trendwest brands," says Stephen P. Holmes, chairman of Cendant's Hospitality Division.

"This acquisition was conducted to increase our scope and diversify our portfolio in the timeshare exchange business," Sam Levenson, SVP corporate and investor relations for Cendant tells GlobeSt.com. The ratio for issuance of Cendant common stock for their acquisition of the remaining Trendwatch common stock will also be based on Cendant stock value. This final step is set to close following SEC approval, and may be as soon as 30 days, says the source, despite published reports stating the deal may take as long as 90 days.