CHH - Choice Hotels calls on Wyndham to engage in merger talks

2023-10-25 16:52:35 ET

Choice Hotels International ( NYSE: CHH ) on Wednesday said it had called upon Wyndham Hotels & Resorts' ( NYSE: WH ) board to engage in discussions over a merger, just over a week after the latter rejected a $90/share takeover offer from the former.

Wyndham ( WH ) on October 17 called Choice's ( CHH ) offer "opportunistic" and said that it undervalued its future growth potential.

"We respect Wyndham's ( WH ) desire to achieve the best outcome for its shareholders, but that can't happen if Wyndham ( WH ) unilaterally ends our discussions," Choice ( CHH ) top boss Patrick Pacious said in Wednesday's statement .

"As recently as a few weeks ago, Wyndham ( WH ) prepared a critical information request list, on which both parties broadly aligned, to help Choice ( CHH ) and Wyndham ( WH ) close any remaining value gaps. Wyndham ( WH ) then disengaged before any information was exchanged. We therefore strongly urge Wyndham ( WH ) to return to the discussions," Pacious added.

CHH's $90/share offer is at a nearly 23% premium to WH's last closing price of $73.18/share.

Wyndham ( WH ) on Wednesday announced its Q3 results, in which CEO Geoff Ballotti said that the company's board remained "confident" that its standalone growth prospects offered "superior, risk-adjusted returns to Wyndham ( WH ) shareholders."

Choice Hotels ( CHH ) stock earlier closed -1.4% at $112.54, while Wyndham ( WH ) closed -1.3% .

More on Choice Hotels, Wyndham Hotels

• Wyndham's Bold Move: Rejecting Choice Hotels' $9.8B Bid
• Choice Hotels: 2024 EBITDA Growth Could Exceed Expectations
• Travel and leisure stocks gain as investors look past macro, war fears
• Wyndham Hotels: It's All About Capital
• Wyndham Hotels & Resorts Q3 2023 Earnings Preview

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