Choice Hotels (NYSE:CHH) has finally abandoned its bid to acquire Wyndham Hotels & Resorts (NYSE:WH). Choice had offered to acquire Wyndham for nearly $85 per share.
Following the expiry of its exchange offer for all of Wyndham’s shares on March 8, the company has also withdrawn the nomination of its independent director candidates to Wyndham’s Board. Concurrently, Choice increased its share repurchase program by five million shares to 6.8 million.
Choice began pursuing Wyndham in April 2023. However, its overtures were rebuffed by Wyndham. Wyndham’s Board, for its part, has encouraged the company’s investors to support its director-nominees in a letter to shareholders today.
Choice’s announcement pulls the curtains on its nearly $7 billion bid for Wyndham. A potential M & A combination would have created a major entity in the budget hotel space while enabling the two companies to compete against their larger peers. Wyndham has a presence in over 95 countries with nearly 9,200 hotels, while Choice has nearly 7,500 hotels in 46 countries.
Is Wyndham Stock a Good Buy?
Wyndham’s stock price is trending nearly 1.3% lower today. In contrast, Choice shares are up by nearly 7.4%. However, the TipRanks Comparison Tool indicates a higher potential upside of nearly 23.6% in Wyndham stock.
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