So far spurned in its attempt to buy Wyndham Hotels & Resorts, Choice Hotels is going hostile.
After seeing its interest rejected out of hand by the Wyndham board, Choice has gone public with its hotel takeover bid.
Choice Hotels has also acquired $110 million in Wyndham stock and is now mulling representatives for Wyndham board seats.
Choice’s original cash-and-stock offer for Wyndham valued its rival at about $8 billion.
It has left the opportunity open for proper discussions with the Wyndham board and hinted at a more valuable hotel takeover bid.
“There is potential for additional value to be unlocked if Wyndham were to return to the negotiating table and provide due diligence,” Choice Hotels CEO Patrick Pacious said.
“It has left us with no choice but to take our proposal directly to Wyndham’s shareholders.”
The Wyndham board said the offer still undervalues its business but it will still evaluate the offer.
Wyndham believes a merger would spark regulatory scrutiny.
