Wyndham Hotels Turns Down Another Acquisition Attempt By Choice Hotels
Portfolio Pulse from Shivani Kumaresan
Wyndham Hotels & Resorts Inc (WH) has rejected another acquisition proposal from Choice Hotels International, Inc (CHH), stating the terms are not in the best interests of Wyndham or its shareholders. The offer from Choice, valued at $86 per share, is lower than the initial $90 per share due to a decline in Choice's share price. The proposal includes a 6% reverse termination fee and a two-year regulatory approval period, which Wyndham believes poses significant risk to its shareholders. WH shares closed at $77.33, down by 0.80%.
November 22, 2023 | 1:18 pm
News sentiment analysis
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NEGATIVE IMPACT
Choice Hotels' latest acquisition offer to Wyndham Hotels is rejected, with the offer price being lower than previously proposed.
The rejection of the acquisition offer by Wyndham and the lower offer price due to the decline in Choice's share price may lead to negative investor perception in the short term, potentially impacting CHH's stock negatively.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90
NEGATIVE IMPACT
Wyndham Hotels rejects Choice Hotels' acquisition offer, considering it undervalued and risky for shareholders.
The rejection of the acquisition proposal could lead to short-term negative sentiment among investors, as it indicates potential instability and uncertainty regarding the company's future. The decline in share price reflects this sentiment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100