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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.

Wyndham further revealed that the proposal carried an ominous "extended regulatory timeline and uncertainty of outcome, potential franchisee churn, and excessive leverage levels at the pro forma combined company."

Wyndham Rejects $7.8B Offer : The Best and Final Play

In an unexpected twist, Choice Hotels had made their 'best and final offer,' implicitly valuing Wyndham at a colossal $7.8 billion, with the stakes rising to a staggering $9.8 billion when accounting for the assumption of Wyndham's net debt. The grandeur of the proposal was undeniable.

Choice Hotels expressed their disappointment in Wyndham's abrupt decision to sever negotiations. It was a perplexing turn of events, considering that just a few weeks prior, both parties were seemingly on the same page, huddled together in a negotiable range on price and considerations.

A Long and Tumultuous Courtship

The courtship between the two giants had started months ago, with Choice sending its initial letter to Wyndham in April, offering $80 per share, featuring a tempting cocktail of 40% cash and 60% Choice stock. This initial offer was met with rejection and a clear refusal to engage in further talks.

Undeterred, Choice Hotels gradually upped the ante, increasing their proposal to $85 per share, with 55% cash and 45% Choice stock in the mix. Nevertheless, Wyndham continued to hold its ground firmly.

The Unyielding Wyndham

Stephen P. Holmes, with the aura of a seasoned player, declared that Choice had been "unwilling or unable to address our concerns," signaling a pivotal moment in this high-stakes game of corporate brinkmanship.