Wyndham gets FTC's second request after hostile bid by Choice

Choice Hotels International

11/01/2024 23:09

Jan 11 (Reuters) - Budget hotel operator Wyndham Hotels
& Resorts  WH.N  said on Thursday it has received a second
request from the U.S. Federal Trade Commission seeking more
information related to a $7.8 billion takeover offer by Choice
Hotels  CHH.N .
    "The second request, which is issued in only around 1% of
deals reviewed by the FTC, marks the start of a complex, lengthy
process... with an uncertain outcome and no guarantee of
closing," Wyndham Chairman Stephen Holmes said.
    Wyndham in December requested its shareholders to reject the
hostile bid launched by Choice in October, citing lower
valuation and a long regulatory review.
    Wyndham has repeatedly highlighted that the offer
undervalues its business and carries regulatory risks. It has
also pointed to a combined company's likely high debt level, as
well as the slower growth prospects of Choice's business.

 (Reporting by Abhinav Parmar in Bengaluru; Editing by Shailesh
Kuber)
 ((Abhinav.Parmar@thomsonreuters.com;))