Choice Hotels asks Wyndham to engage in merger talks (updated)

Wyndham Hotels & Resorts

25/10/2023 21:24

(Adds comment in paragraph 2, details in paragraphs 3, 4, 5)
       Oct 25 (Reuters) - Choice Hotels  CHH.N  said on
Wednesday that it had asked the board of U.S. budget hotel
operator Wyndham Hotels and Resorts  WH.N  to engage in merger
talks.
    This comes about a week after Wyndham rejected Choice's $7.8
billion acquisition offer, deeming it "underwhelming" and citing
regulatory risks around a potential deal.
    "We respect Wyndham's desire to achieve the best outcome for
its shareholders, but that can't happen if Wyndham unilaterally
ends our discussions," Choice CEO Patrick Pacious said.
        Choice said it first approached Wyndham in April with an
$80 per share offer, which it later bumped up to $85. Both
companies were within a "negotiable range" on the price a few
weeks ago, the Rockville, Maryland-based company said last week.
  
         It said on Wednesday that it was ready to move
expeditiously to negotiate the terms for a deal.
  

 (Reporting by Akash Sriram in Bengaluru; Editing by Anil
D'Silva and Pooja Desai)
 ((Akash.Sriram@thomsonreuters.com; @HoodieOnVeshti on X;
+91-74116-87774;))