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Choice Hotels launches takeover bid for rival Wyndham
Choice Hotels International has made a hostile bid for rival Wyndham worth nearly $8 billion.
It is courting Wyndham shareholders after talks between the two firms broke down.
Wyndham unexpectedly pulled out of discussions which were going well, it says.
“A few weeks ago, Choice and Wyndham were in a negotiable range on price and consideration,’ said Choice CEO Patrick Pacious.
”We were therefore surprised and disappointed that Wyndham decided to disengage.”
“Following their unwillingness to proceed, we feel there is too much value for both companies’ franchisees, and shareholders.”
Choice Hotels has offered a 20% premium to Wyndham’s latest closing price.
Wyndham shareholders have a choice of cash, stock, or both.
The offer values Wyndham at about $7.8 billion or $9.8 billion including debt.
Choice first approached Wyndham several months ago and made several offers.
Wyndham is the bigger of the two companies, operating about 2,000 more hotels.
Wyndam’s brand portfolio includes Days Inn, Howard Johnson, La Quinta, Ramada, Super 8 and Travelodge.
It posted a $355 million profit last year.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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