Choice Hotels International Inc is urging Wyndham Hotels & Resorts Inc (NYSE:WH) shareholders to accept its unsolicited buyout offer and reject the concerns from Wyndham’s board of directors.
On Monday, Wyndham’s board recommended that its shareholders reject the buyout offer of $85 a share, describing it as “inadequate and highly conditional.”
Choice Hotels noted it had discussions with institutional shareholders representing 40% of Wyndham’s total outstanding shares, who “consistently expressed support” for its recent offer to exchange their shares for Choice shares or cash.
Choice added that representatives of Wyndham contacted its representatives to talk about “a potential transaction and regulatory protections,” but the “good faith discussions” ended “abruptly” on December 17.
Choice also stated that Wyndham shareholders should be concerned by the company's blatant mischaracterization of the lodging industry's competitive landscape.
Shares of Choice Hotels edged 0.7% lower to $112.14 in midday trading on Wednesday, while Wyndham shares rose 0.4% to $79.97 and have gained 14% year to date.