Choice Hotels International isn't giving up on its fight to acquire rival Wyndham Hotels & Resorts Inc.
On Tuesday, after being repeatedly turned down, it launched a hostile bid for the company, offering shareholders the same deal it put on the table in October.
Choice said Tuesday that it "maintains the previously proposed offer to Wyndham" of $49.50 in cash and 0.324 shares of Choice common stock per Wyndham share. This represents a value of $40.50 based on Choice's trading price as of Oct. 16, 2023, the day before Choice's first public offer.
WYNDHAM REJECTS $7.8B HOSTILE BID FROM CHOICE HOTELS
Wyndham, with more than 9,000 hotels across 24 brands, rejected a nearly $8 billion unsolicited offer due to regulatory concerns.
Wyndham Chairman Stephen Holmes said in a statement immediately following the October proposal that the offer was "subject to significant business, regulatory and execution risk" and that Choice was "unwilling or unable to address" Wyndham's concerns.
Choice argued on Tuesday that "a transaction with Wyndham is pro-competitive and would generate value for both Wyndham and Choice shareholders as well as deliver significant benefits to franchisees, guests and associates of both companies."
HILTON TO INSTALL TESLA CHARGERS AT 2,000 HOTELS
Both companies had been working on a deal to combine the affordable hotel companies for nearly six months before Wyndham cut off talks, according to Choice Hotels CEO Patrick Pacious. As a result, Choice decided to make its bid public earlier this year.
Choice initially proposed to acquire Wyndham in April for $80 per share in cash and stock, but "Wyndham rejected the proposal and refused to engage in further discussions," the company previously said.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Choice decided to increase its proposal to $85 per share and then $90 per share as board members and executives from both companies met.
