Choice Hotels International Inc. has urged Wyndham Hotels & Resorts Inc. shareholders to accept the company’s unsolicited buyout offer, despite opposition from the Wyndham board.
On Monday Wyndham’s
WH,
board recommended that its shareholders reject the buyout offer of $85 a share, describing it as “inadequate and highly conditional.” Wyndham said it’s able to deliver shareholder value in excess of the current offer.
Related: Wyndham board recommends against unsolicited buyout offer from Choice Hotels
In a statement released Wednesday Choice Hotels
CHH,
urged Wyndham shareholders to tender their shares in the exchange offer to send a “clear message” to Wyndham’s board. “Wyndham has sought to threaten shareholders’ ability to realize value,” Choice Hotels said. “Wyndham’s comments call into question their ability to properly support franchisees while also generating shareholder value through M&A,” the company added.
Choice Hotels also said that it has recently engaged with Wyndham shareholders representing over 40% of shares outstanding based on the most recently available filings. “In our discussions, many shareholders have consistently expressed support for the industrial merits of a transaction as well as the desire for both parties to work together to reach an expedient resolution,” Choice Hotels said.
Related: Wyndham signals it will again reject hostile takeover bid from Choice Hotels
The North Bethesda, Md.-based company said it is confident that the transaction can be completed within a one-year “customary timeframe” and is committed to moving forward with the process. MarketWatch has reached out to Wyndham Hotels with a request for comment on this story.
Choice Hotels shares rose 1.4% in premarket trades Wednesday and Wyndham Hotels shares rose 0.1%.
Related: Choice Hotels’ hostile bid for Wyndham Hotels may result in a proxy battle, Truist says
Shares of Choice Hotels are up 0.2% in 2023, while Wyndham Hotels shares are up 11.7%, compared with the S&P 500 index’s
SPX
gain of 24.2%.
Steve Gelsi contributed.
