Choice Hotels International has filed an investor presentation with the Securities and Exchange Commission related to its proposal to acquire Wyndham Hotels & Resorts Inc (NYSE:WH).
Choice has accused Wyndham of making “false and misleading antitrust claims” about the company’s unsolicited buyout offer.
"We are disappointed Wyndham is pushing this disinformation campaign,” Choice Hotels CEO Patrick Pacious said in a statement. “Their take on the antitrust risk on our proposed combination is misleading and further reflects the board's apparent entrenchment.”
He continued, “Wyndham's characterization of the lodging industry's competitive landscape and relevant regulatory criteria is incorrect. Our pro-competitive combination is well positioned to obtain approval, and we remain committed to completing it for the benefit of both companies' franchisees, shareholders and guests."
Last month, Choice said 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.
The choice presentation accused Wyndham of misrepresenting competition in the hotel sector by segmenting brands by STR1 chain scales, effectively a measure of hotel demand.
However, “STR1 chain scales are not meaningful under antitrust law,” Choice said in a statement. “Wyndham overlooks that Choice and Wyndham account for only 10% of US room revenue.”
“Wyndham's overly narrow definition of the market is contradicted by clear legal and regulatory precedent and has already been rejected by antitrust enforcers in their approval of the Marriott-Starwood combination.”
The full presentation can be found here.
Shares of Choice Hotels rose 0.6% Wednesday morning, while Wyndham stock was flat.