Rechercher dans ce blog

Tuesday, October 17, 2023

Wyndham rejects $7.8B hostile bid from Choice Hotels - Fox Business

Wyndham Hotels & Resorts rejected a nearly $8 billion hostile takeover bid from rival Choice Hotels on Tuesday due to regulatory concerns. 

The company announced that its board of directors unanimously rejected the deal to acquire the company at $90 per share in cash and stock. 

"Choice's offer is underwhelming, highly conditional, and subject to significant business, regulatory and execution risk. Choice has been unwilling or unable to address our concerns," Wyndham Chairman Stephen Holmes said in a statement. 

Holmes also said that the "proposed transaction likely would take more than a year to even determine if, and on what terms, it could clear antitrust review." 

HILTON TO INSTALL TESLA CHARGERS AT 2,000 HOTELS

Choice Hotels issued an unsolicited proposal to acquire Wyndham, which encompasses 24 brands including Super8, Travelodge and Days Inn, after it walked away from the negotiating table "a few weeks ago." 

In total, the proposal had a total value of roughly $7.8 billion. Including Wyndham's debt, the deal is valued at $9.8 billion.  

The deal, a 30% premium from Wyndham's closing stock price on Monday, was Choice Hotels' latest attempt to stay on track to create a budget hotel giant. 

Wyndham Hotels & Resorts

Signage is displayed outside the Days Inn by Wyndham Wild Wild West Gambling Hall & Hotel in Las Vegas, Nevada, on July 26, 2020.  (Roger Kisby/Bloomberg via Getty Images / Getty Images)

Choice Hotels CEO Patrick Pacious said in a statement that both companies had been working on a deal to combine the affordable hotel companies for nearly six months before Wyndham cut off talks. As a result, Choice decided to make its bid public. 

Ticker Security Last Change Change %
WH WYNDHAM HOTELS & RESORTS 75.27 +6.17 +8.93%
CHH CHOICE HOTELS INTERNATIONAL 116.35 -8.52 -6.82%

"We were therefore surprised and disappointed that Wyndham decided to disengage," Pacious said, adding that "while we would have preferred to continue discussions with Wyndham in private, following their unwillingness to proceed, we feel there is too much value for both companies' franchisees, shareholders, associates, and guests to not continue pursuing this transaction." 

La Quinta Inn

Signage is displayed outside La Quinta Inn & Suites by Wyndham hotel in Las Vegas, Nevada, on July 26, 2020. (Roger Kisby/Bloomberg via Getty Images / Getty Images)

THE BEST TRAVEL REWARDS PROGRAMS, RANKED

Choice initially proposed to acquire Wyndham in April for $80 per share in cash and stock, but "Wyndham rejected the proposal and refused to engage in further discussions," the company said. 

Choice decided to increase its proposal to $85 per share and then $90 per share as board members and executives from both companies met. However, last month, Wyndham raised concerns over regulatory approvals, according to Choice.

Choice argued that the deal would benefit both companies' stakeholders, including franchisees, shareholders, associates, and guests, "that will be particularly significant in the current uncertain economic climate."

"We have long respected Wyndham's business and are confident that this combination would significantly accelerate both Choice's and Wyndham's long-term organic growth strategy for the benefit of all stakeholders," Choice said.

Representatives for Wyndham did not respond to FOX Business' request for comment.

Adblock test (Why?)


Wyndham rejects $7.8B hostile bid from Choice Hotels - Fox Business
Read More

No comments:

Post a Comment

Regional Bank Stocks Fall After New York Community Bancorp Cuts Dividend, Posts Loss - The Wall Street Journal

[unable to retrieve full-text content] Regional Bank Stocks Fall After New York Community Bancorp Cuts Dividend, Posts Loss    The Wall St...