Wyndham Strongly Rejects Choice Hotels’ Hostile Bid But Leaves Door Open

Wyndham's executives talked at length Thursday about why they wouldn't accept the unsolicited bid from Choice Hotels – a $9.8 billion buyout offer after assuming debt.

"With no organic growth, a less vibrant loyalty program, and virtually no international capabilities in Choice's platform, we are, frankly, not surprised [Choice made a hostile bid to merge]," said Stephen Holmes, chairman of Wyndham's board. "Our business offers a medicine cabinet full of remedies."

Wyndham released a presentation outlining why it believes it would be smarter to go it alone. (Embedded below.)

But Wyndham execs didn't slam the door shut. "The ball is really in their court," Holmes said.

Choice Hotels on Wednesday called on Wyndham to return to merger talks.

"Their plan seems to be to put out repetitive press releases and see if they can turn the water enough to make it interesting for us," Wyndham's Holmes said. "That's a bit of a desperate plan."

Wyndham's Top Objections

Wyndham executives highlighted "execution risk," a lack of cash up-front, and Choice's alleged weaker performance as its top hesitations about a deal.

"Asymmetrical" risks, including antitrust review

Wyndham noted that U.S. antitrust investigations are "at historic highs" and that a "combination between direct compe