Skift Take
Wyndham execs and board members more forcefully rejected Choice Hotels' current terms for a merger on Thursday. But they explicitly left the door open to a more generous offer from a market player.
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 ObjectionsWyndham 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