New counterpunch by Choice in Wyndham takeover battle

NORTH BETHESDA, Maryland - Choice Hotels International published its latest accusations against Wyndham Hotels & Resorts on Wednesday, suggesting Wyndham’s board is not being transparent with shareholders and is blatantly mischaracterizing the lodging industry’s competitive landscape.

In the ongoing and now ugly battle of Choice Hotels' now hostile takeover bid for Wyndham Hotels & Resorts, the would-be buyer stated that following the launch of Choice’s exchange offer to acquire all outstanding shares of Wyndham on December 12, Wyndham contacted Choice and engaged in further deal discussions on December 17. Choice added that Wyndham failed to disclose these discussions in the Schedule 14d-9 that it filed on December 19.

Hotel Investment Today has reached out to Wyndham for comment about this Choice statement.

Choice further said Wyndham “has sought to threaten shareholders' ability to realize value and that “Wyndham shareholders should be concerned by the company’s blatant mischaracterization of the lodging industry’s competitive landscape.”

Choice added that “Wyndham’s comments call into question their ability to properly support franchisees while also generating shareholder value through M&A. The U.S. Federal Trade Commission (FTC) will come to its own independent assessment of the proposed transaction’s competitive merits based on the specific facts, like it does on every M&A transaction.

“Attempting to use the FTC to prevent Wyndham shareholders from even accessing the option of a merger with Choice robs them of meaningful upside from the combination or, at a minimum, the substantial break-fee Choice has offered in the unlikely event the transaction was not to receive the requisite regulatory clearance.”

Naturally, Choice closed its Wednesday statement by adding that it is eager to work with Wyndham to “reach an expedient resolution.”