: Choice Hotels launches exchange offer to acquire Wyndham after latter’s board declines to engage in talks

Choice Hotels International Inc. CHH said Tuesday it’s launching an exchange offer to acquire Wyndham Hotels & Resorts Inc. for $40.50 a share in cash, stock, or cash and stock. The hotel group, which launched a hostile bid for Wyndham in October, said it would have preferred a negotiated agreement, but as the Wyndham board has refused to explore a deal, it has no choice but to take its offer directly to shareholders. “Wyndham chose to publicly reject our last proposal without any engagement even after we addressed their concerns, including adding significant regulatory protections for their shareholders,” said Choice CEO Patrick Pacious in a statement. “It remains our goal to reach a mutually agreeable transaction, and there is potential for additional value to be unlocked if Wyndham were to return to the negotiating table and provide due diligence.” Choice said it currently holds 1.5 million shares of Wyndham’s common stock that valued at more than $110 million and that it would file the Hart-Scott-Rodino notification later Tuesday to start the required regulatory review. The exchange offer will expire on Friday, March 8, 2024, unless its extended or terminated. Wyndham’s stock was up 1.6% early Tuesday and has gained 11% in the year to date, while the S&P 500 SPX has gained 20%.

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