Wyndham Hotels Urges Shareholders to Reject Takeover Bid from Choice Hotels

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Wyndham Hotels & Resorts is advising its shareholders to decline the latest takeover offer from rival Choice Hotels International. The appeal comes after negotiations between the two hotel operators’ boards fell through.

According to Wyndham Chairman Stephen Holmes, Choice has not adequately addressed the significant value gap and risks associated with their offer, which has remained virtually unchanged from their previous unsolicited proposal.

Holmes further stated that the proposal could lead to a lengthy regulatory review and fails to appropriately value Wyndham.

Choice’s Chief Executive, Pat Pacious, asserts that the company is actively working towards obtaining regulatory approval for the merger. Pacious believes that joining forces would provide the combined company with the scale necessary to compete against larger rivals like Hilton and Marriott.

Despite multiple attempts by Choice to strike a cash-and-stock deal, Wyndham executives have consistently rejected their advances. Wyndham has stated that the current offer from Choice values the company at approximately $85 per share.

Choice has been steadily acquiring a stake in Wyndham, currently owning around 1.5 million shares of common stock, worth over $110 million. To further their agenda, Choice plans to nominate a slate of directors for voting at Wyndham’s 2024 annual shareholder meeting. The process of interviewing candidates is currently underway, with the nomination window spanning from January 10 to February 9.

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