CHH - Wyndham asks shareholders to reject Choice Hotels' takeover bid

2023-12-18 14:01:25 ET

Wyndham Hotels & Resorts ( NYSE: WH ) on Monday said it had asked its shareholders to spurn Choice Hotels International's ( NYSE: CHH ) acquisition exchange offer, about a week after the latter launched a hostile takeover bid.

Choice ( CHH ) last Tuesday announced a $8B exchange offer to shareholders of Wyndham ( WH ), with the terms of the deal the same as its last bid of $49.50 in cash and 0.324 shares of CHH common stock per WH share.

The hostile takeover bid from Choice ( CHH ) came after Parsippany, N.J.-based Wyndham ( WH ) repeatedly rebuffed CHH's overtures.

"Choice ( CHH ) has, once again, failed to address the major value gap and risks of their offer – which remains virtually unchanged from the terms outlined in their previous unsolicited proposal," Stephen Holmes, chairman of Wyndham's ( WH ) board, said in Monday's statement .

"We are confident Wyndham ( WH ) can deliver long-term shareholder value well in excess of the $85 per share offered by Choice ( CHH ) by continuing to execute on our existing business plan," Holmes added.

Shares of Wyndham ( WH ) were last up about 2% to $79.38 in late afternoon trade. Choice Hotels ( CHH ) stock had climbed about 2.1% to $112.81.

More on Choice Hotels, Wyndham Hotels & Resorts

• Choice Hotels International, Inc. (CHH) Q3 2023 Earnings Call Transcript
• Wyndham Hotels & Resorts, Inc. (WH) Q3 2023 Earnings Call Transcript
• Wyndham Hotels & Resorts, Inc. 2023 Q3 - Results - Earnings Call Presentation
• Seeking Alpha's Quant Rating on Choice Hotels International
• Seeking Alpha's Quant Rating on Wyndham Hotels & Resorts

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