By Choice Hotels International Inc. (CHH) has recently made a bold move to acquire Wyndham Hotels & Resorts Inc. (WH), which, in turn, has sparked a significant surge in Wyndham’s stock value. On the other hand, Choice shares experienced a decline in their market worth. Offering a generous price of $90 per share, payable through a combination of cash and stock, Choice aims to seal the deal with Wyndham. This acquisition deal holds an approximate value of $7.8 billion, taking into account the full dilution of shares, and rises to approximately $9.8 billion with the inclusion of Wyndham’s net debt.
Choice Hotels has decided to publicly announce its latest proposal following Wyndham’s decision to terminate any further discussions with Choice. According to Choice, this unexpected development follows almost six months of active negotiations between the two companies. Patrick Pacious, CEO of Choice, expressed his surprise and disappointment at Wyndham’s decision to end the negotiations. He highlighted that just a few weeks ago, both parties were on the verge of reaching a mutually acceptable price and consideration. Moreover, both companies recognized the significant value that could be created through this potential transaction.
Despite this setback, Choice Hotels International remains committed to pursuing the acquisition of Wyndham Hotels & Resorts. By presenting this hostile bid, Choice aims to leverage the remarkable financial prospects that lie ahead and manifest their vision for growth in the industry.
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