Wyndham Board Of Directors Rejects Unsolicited Proposal From Choice
Portfolio Pulse from Benzinga Newsdesk
Wyndham Hotels & Resorts (NYSE:WH) has rejected an unsolicited stock-and-cash proposal from Choice Hotels International, Inc. (NYSE:CHH) to acquire all outstanding shares of Wyndham. The proposal, valued at $90 per share, was deemed not in the best interest of shareholders due to significant business and execution risks, potential franchisee churn, and excessive leverage levels at the combined company. Wyndham's Board also expressed concerns about the value of Choice's stock and the long-term risks to Wyndham's business and shareholders.
October 17, 2023 | 3:57 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Choice Hotels' failed acquisition attempt could negatively impact its stock in the short term. The rejection also raises questions about the value of Choice's stock and its growth prospects.
The rejection of the acquisition proposal could negatively impact Choice Hotels' stock in the short term. Additionally, the concerns raised by Wyndham's board about the value of Choice's stock and its growth prospects could further impact investor confidence.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Wyndham's rejection of Choice Hotels' acquisition proposal may lead to short-term uncertainty for the company's stock. However, the board's confidence in Wyndham's future growth potential could boost investor confidence.
The rejection of the acquisition proposal introduces uncertainty, which could negatively impact the stock in the short term. However, the board's confidence in Wyndham's future growth potential and its commitment to shareholder value could have a positive impact in the longer term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100