After several previous attempts, Choice Hotels is launching a hostile takeover offer for Wyndham Hotels & Resorts.
As reported by The Associated Press, Choice is putting forth a $8 billion offer directly to Wyndham’s shareholders, after the company’s management rejected the same deal in October.
In a statement, Choice CEO Patrick Pacious said while they would have “preferred to come to a negotiated agreement,” the refusal of Wyndham’s board of directors to discuss the offer “left us with no choice” to go directly to the stakeholders. He also accused Wyndham’s board of publicly refusing the offer without any engagement. However, Pacious added that there is still potential for “additional value to be unlocked” if Wyndham agrees to negotiations.
In October, Wyndham’s board called the $8 billion offer from Choice “opportunistic” and rejected it on the primary basis that it undervalued the company’s worth.
In a news release, board members confirmed they received the newest offer, and while they noted it appears to be “unchanged,” they will review it. The board has asked shareholders not to take any action until they provide a recommendation.
Wyndham includes brands such as Days Inn and Travelodge, operating and franchising a portfolio of 24 brands. Choice Hotels, with a portfolio including Econo Lodge, Quality Inn, and Clarion, franchises more than 7,000 hotels.
