Wyndham Says Choice Hotels' Acquisition Offer Undervalues Company

(RTTNews) - Wyndham Hotels & Resorts, Inc. (WH) said on Tuesday that an acquisition proposal from Choice Hotels International, Inc. (CHH) is not in the best interests of the company or its shareholders.

Wyndham noted that the offer to acquire all of its shares for $86 per share is below the nominal value of $90 per share, proposed in a Choice's public disclosure on October 17.

In addition, the offer proposes a two-year period for Choice to seek to obtain regulatory approvals supported only by a low 6 percent reverse termination fee. According to WYN, this could create a prolonged period of limbo and expose Wyndham and its shareholders to significant asymmetrical risk.