Choice Hotels International, Inc. CHH is reportedly intensifying its efforts to acquire rival Wyndham Hotels & Resorts, Inc. WH in an ongoing $8 billion takeover attempt.
The company has acquired a shareholder position in Wyndham by purchasing shares in the open market and is planning to further increase its stake, reported Reuters, citing people familiar with the matter.
This strategic move grants Choice the ability to nominate directors to Wyndham's board in January, potentially turning the upcoming annual shareholder meeting into a pivotal moment for the takeover bid, the report added.
Choice is not only eyeing board seats but is also interviewing potential nominees for its board slate. Furthermore, the company is reportedly preparing a tender offer for Wyndham's shares, demonstrating a concrete proposal to Wyndham's investors.
This approach follows Wyndham's consistent rejection of Choice's offers. The proposed merger between Choice and Wyndham would unite two of the largest budget hotel operators in the U.S.
The report further noted that Wyndham has indicated its willingness to engage with Choice and is open to signing a confidential pact if all its concerns about a potential deal are addressed.
This takeover battle went public last month when Choice disclosed a cash-and-stock offer of $90 per share for Wyndham, following private rebuffs of its earlier $80-per-share proposal.
Price Action: CHH shares are trading lower by 0.83% at $113.19 on the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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