Choice Hotels goes hostile in $8 billion takeover bid for Wyndham after being repeatedly rebuffed

Choice Hotels is making a bold move by launching a hostile takeover offer for Wyndham Hotels & Resorts, a rival hotel chain. Despite multiple attempts to negotiate a deal with Wyndham, Choice Hotels’ efforts were met with resistance. Their offer to Wyndham shareholders remains unchanged: $49.50 in cash and 0.324 shares of Choice common stock per Wyndham share, allowing shareholders to choose between cash, shares, or a combination of both. This hostile takeover bid values Wyndham, the larger of the two chains, at approximately $8 billion.

Choice Hotels’ CEO, Patrick Pacious, expressed a preference for a negotiated agreement but stated that Wyndham’s refusal to engage in discussions left them with no alternative but to appeal directly to Wyndham’s shareholders. Pacious also highlighted the potential for additional value if Wyndham were to return to the negotiation table.

This development raises important questions about business strategies, negotiations, and the interests of shareholders in the ever-evolving hospitality industry. How can businesses like Choice Hotels navigate hostile takeovers effectively? What factors should shareholders consider when evaluating such offers? And how do these moves impact the broader economy and consumer choices in the hotel industry?……….[read more]

Rising Dough

How can businesses protect their interests and effectively negotiate in the face of hostile takeover attempts, and what role do shareholders play in shaping the outcome?

*Click on the “Full Loaf” icon to read the full article! After you read the full article, let us know your thoughts.

0 0 votes

Article Rating

☕️ **Discover Stone Street Coffee Company – Your Coffee Haven!** Today’s Dough readers, if you’re on the hunt for exceptional coffee and cold brew, look no further than Stone Street Coffee Company. We at Today’s Dough are smitten with their rich coffee blends and refreshing Cold Brew. Stone Street’s commitment to quality shines through in every sip. Now, exclusively for our readers, click the banner above to snag a $5 off coupon on your next order. Experience the finest, ethically sourced beans roasted to perfection. Join the Stone Street community, savor top-notch coffee, and elevate your daily brew. ☕️🌟

3 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments

Guest

Doristin

7 months ago

Businesses can protect their interests and effectively negotiate by making the purchase less appealing to the buying company. Shareholder’s idea of the rewards and problems, they can support or oppose the takeover.

Guest

Eli

7 months ago

To protect their interests during a hostile takeover, businesses can use strategies like implementing anti-takeover measures and seeking out friendly potential buyers, known as white knights. Shareholders play a crucial role in shaping the outcome through their voting power.

Guest

Jessie Sanchez

7 months ago

Businesses can implement poison pills, or adopt staggered boards. Shareholders play a crucial role by supporting management, influencing the outcome through voting power and activism. Successful negotiation often involves strategic communication with shareholders and a comprehensive defense plan