Choice Hotels is preparing to nominate multiple directors to the board of Wyndham Hotels & Resorts in a move to advance its $9.8 billion unsolicited merger bid between the two hotel companies, according to a report in Reuters. The report said that Choice has recently bought a small stake in Wyndham that would give Choice the right to nominate directors for elections to be held at Wyndham’s annual meeting next spring.
A Choice spokesperson said in response to the report that “We are committed to reaching a transaction with Wyndham, and we intend to pursue all paths available to us to get there.”
Choice Hotels is taking these steps because Wyndham once again rebuffed the offer on Nov. 21 to restart merger talks. In October, Choice announced its $9.8 billion acquisition offer, which was based on a mix of cash and stock and the taking on of about $2 billion in debt.
Wyndham has since raised objections that Choice’s offer undervalues its company and also that it doesn’t account for potential risks to Wyndham if the deal fails to pass antitrust review, among other concerns. A merger would create the largest US public hotel company in the budget and midscale sectors.
