Choice Hotels International is asking shareholders of rival chain Wyndham Hotels & Resorts to sign off on a buyout worth nearly $8 billion after Wyndham broke off negotiations, the company said Tuesday.
Choice's proposal allows Wyndham shareholders to choose either cash, stock, or a combination of cash and stock.
Choice first approached Wyndham in April, offering $80.00 per share, with 40% of that cash and 60% Choice stock, but was rejected, Choice said.
But, according to Choice, Wyndham voiced concerns about regulatory approval in September and also the value of Choice stock.
Shares of Wyndham Hotels & Resorts Inc. jumped more than 15% before the opening bell Tuesday, to $82.40.
Persons:
Wyndham, “, Patrick Pacious, ”, Howard Johnson
Organizations:
Wyndham Hotels, Resorts, Wyndham, Choice, Ramada, Resorts Inc, Inc
Locations:
Rockville , Maryland, Wyndham, La Quinta, Parsippany , New Jersey