Choice Hotels Takes Its Proposal Directly To Wyndham Shareholders - Can The Hostile Attempt Succeed?
Portfolio Pulse from Shivani Kumaresan
Choice Hotels International Inc (CHH) has initiated an exchange offer to acquire Wyndham Hotels & Resorts, Inc (WH), taking the proposal directly to Wyndham's shareholders after Wyndham's board rejected a previous offer. Choice holds about 1.5 million shares of Wyndham, valued over $110 million, and proposes $49.50 in cash and 0.324 shares of Choice stock per Wyndham share. The offer expires on March 8, 2024. Wyndham, owning less than 1.7% of its stock, advises shareholders to wait for its recommendation.
December 12, 2023 | 4:10 pm
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NEUTRAL IMPACT
Choice Hotels has publicly initiated an exchange offer to acquire Wyndham Hotels, directly appealing to Wyndham's shareholders, after its board rejected a previous offer.
The direct offer to shareholders is a significant move that could lead to acquisition-related volatility. However, the outcome is uncertain, and the stock is currently trading lower, indicating a neutral to slightly negative short-term impact.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
NEUTRAL IMPACT
Wyndham Hotels & Resorts is the target of an exchange offer by Choice Hotels, which is taking the proposal directly to its shareholders after the board rejected a similar offer.
Wyndham is the subject of a hostile takeover attempt, which typically creates uncertainty and could lead to stock volatility. The company's advice to shareholders to wait for a recommendation suggests a cautious approach, leading to a neutral short-term impact.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90