Choice withdraws US$8bn takeover bid for Wyndham

choice
Choice's hostile takeover bid for Wyndham is over.

Choice Hotels has abandoned its US$8 billion hostile takeover bid for Wyndham Hotels & Resorts ending any chance to create what would have been North America’s largest budget hotel franchisor.

Wyndham had previously rejected four offers by Choice which kicked off with a bid of US$80 per share a year ago.

The last offer was actually four dollars less per share than its US$90 per-share offer in August 2023.

Choice said it is withdrawing its nominations of director candidates for Wyndham’s board.

“Given Wyndham’s refusal to constructively and substantively engage on terms, Choice took the extraordinary step of launching the exchange offer to initiate the regulatory review process and engage with Wyndham stockholders,” Choice said in a statement.

“While the support from Wyndham stockholders tendering into the exchange offer was significant considering the number of investors structurally prevented from participating at this stage, it was not sufficient for Choice to conclude – particularly when taking into account the Wyndham board’s obvious continuing disinterest in a combination – that a path towards a transaction is available at this time.

“As such, Choice has decided not to extend the exchange offer and is withdrawing its slate. Choice intends to continue focusing on its standalone strategy, which the Company is confident will create significant long-term value for its stockholders and franchisees.”