Choice Hotels makes $7.8 billion Wyndham offer public after merger talks break down
Choice Hotels on Tuesday made its latest $7.8 billion cash-and-stock offer public after Wyndham Hotels and Resorts decided to walk away from merger talks, halting six months of discussions around creating a U.S. budget hotel giant.
Wyndham rejected Choice Hotels' takeover bid, the Wall Street Journal reported, citing company executives.
Choice's offer of $90.00 per share, including $49.50 in cash and 0.324 shares of its common stock for each share held, represents about a 30% premium to Wyndham's last closing price.
Shares of Wyndham jumped as much as 13% to $78.48 in morning trade, but were well below the offer price of $90 per share.
The company did not immediately respond to a Reuters request for a comment. Choice Hotels shares were down 5%.
A potential combination would marry Choice Hotels' brands such as Econo Lodge, Quality Inn and Clarion with Wyndham's Days Inn and Travelodge, offering inflation-hit customers a wide choice of affordable hotels.
Choice first approached Wyndham in April with an $80 per share offer, which it later bumped up to $85 in May.
