After buying back Wyndham Hotels & Resorts stock, Choice Hotels executives are potentially considering adding supportive board members to their takeover bid.
Choice Hotels may be using a new strategy in its takeover bid for Wyndham Hotels & Resorts.
In an exclusive report, Reuters said the hotel company could seek to appoint members to Wyndham’s board who would be more receptive to its buyout efforts.
Choice considers participating in a takeover bid
Since May 2023, Choice Hotels publicly considering merger with Wyndham Hotels & Resorts. After the failure of negotiations between the two parties with a view to an amicable merger, Choice submitted a $9.8 billion bid to their competitor in October 2023, which was rejected.
From now on, the hotelier is looking for another way to progress towards his goal. According to Reuters, the company bought shares of Wyndham on the New York Stock Exchange, with the intention of getting even more.
Through their actions, Choice would be able to appoint people to serve on Wyndham’s board who might be more interested in a merger. Choice is reportedly interviewing potential candidates who could join the board in January 2024.
An inside source also told Reuters that along with board nominees, Choice could also submit a new purchase offer for Wyndham, signaling serious intentions to move forward with a merger. If successful, it could potentially create a company with more than 15,000 locations worldwide. It would also complement Choice’s acquisition of Radisson’s U.S. properties, completed in 2022.
If a merger were to proceed, it could potentially face increased scrutiny from federal antitrust and anticompetitive authorities. The US Department of Justice bawakened the Northeast Alliance between American Airlines and JetBlueand is currently on trial for proposed merger between JetBlue and Spirit Airlines.
Neither Choice Hotels nor Wyndham have publicly commented on this information.