In a thrilling twist of events, Wyndham Hotels & Resorts Inc. has firmly rebuffed a daring $7.8 billion buyout offer from the Choice Hotels International Inc.-led consortium, fronted by Willkie Farr & Gallagher LLP. The high-stakes hotel showdown, reminiscent of a gripping poker game, unfolded on Tuesday.
Wyndham Rejects $7.8B Offer : A Premium Proposition
Choice Hotels presented an audacious deal, proposing to acquire all outstanding shares of Wyndham at a lavish $90 per share, sending shockwaves with a whopping 30% premium over Wyndham’s recent closing stock price. This tantalizing bid comprised an enticing blend of 55% in cash and 45% in Choice Hotels stock, as disclosed in an early morning communiqué.
However, the tables turned swiftly, with Wyndham vehemently rejecting the proposal through an official statement. The company’s board, as if revealing a hidden ace up their sleeve, unanimously dismissed the audacious move.
Underwhelming Offer Unmasked
Stephen P. Holmes, the chair of Wyndham’s board, unveiled the trump card in the game of mergers and acquisitions. He declared Choice’s offer as “underwhelming, highly conditional, and subject to significant business, regulatory, and execution risk.” The room was tense as this revelation left many in bewilderment.
