In a surprising turn of events, Choice Hotels International Inc. has decided to withdraw its slate of nominees for election to Wyndham Hotels & Resorts’ board of directors, effectively ending its hostile takeover bid.
Fierce Battle Comes to a Close
Choice Hotels’ decision comes after months of intense negotiations and exchange offers. Despite repeated attempts to engage in constructive discussions with Wyndham, Choice Hotels faced staunch resistance from its competitor.
Choice Hotels abandons takeover bid for Wyndham : Choice’s Frustration
Expressing disappointment, Choice Hotels stated that despite increasing its proposed takeover offer multiple times, Wyndham consistently rebuffed their efforts to negotiate in good faith.
Chairman’s Relief
Wyndham’s Chairman, Stephen P. Holmes, expressed relief at Choice’s decision, stating that the company can now focus on executing its strategic plan without the distraction of the takeover bid.
Choice Hotels abandons takeover bid for Wyndham : CEO’s Optimism
Geoff Ballotti, Wyndham’s President and CEO, echoed Holmes’ sentiment, emphasizing the company’s commitment to generating value and moving forward with its strategic initiatives.
Contentious Offers and Rejections
Choice Hotels’ most recent offer, which included $49.50 in cash and 0.324 shares of Choice common stock per Wyndham share, failed to sway Wyndham’s board.
Wyndham’s Rejection
Wyndham rejected Choice’s offers, citing concerns about undervaluation and the associated regulatory risks, including a recent second request from the Federal Trade Commission (FTC).
Choice Hotels abandons takeover bid for Wyndham : Legal Representation
Choice Hotels is represented by Willkie Farr & Gallagher LLP, with Axinn Veltrop & Harkrider LLP advising on antitrust matters. Meanwhile, Wyndham is advised by Kirkland & Ellis LLP and Arnold & Porter Kaye Scholer LLP.
Legal Expertise
Leading the legal teams, Kirkland & Ellis LLP’s partners Daniel Wolf and Shaun Mathew played pivotal roles in Wyndham’s defense strategy.
