Choice Hotels offers nearly $8B for rival Wyndham Hotels & Resorts as travel booms

abcnews.go.com:

Wyndham says its board is unanimously rejecting Choice Hotels' unsolicited buyout offer worth nearly $8 billion

Wyndham Hotels & Resorts rejected an unsolicited $8 billion buyout offer from Choice Hotels, a smaller chain that went public Tuesday with its bid after negotiations broke down.

Wyndham, which runs Days Inn, La Quinta, Ramada and a host of other brands, on Tuesday called the proposal “opportunistic” and said that it undervalues its growth potential. The offer was rejected unanimously by its board, the company said.

“Choice's offer is underwhelming, highly conditional and subject to significant business, regulatory and execution risk," Wyndham Chairman Stephen Holmes said in a prepared statement. «Choice has been unwilling or unable to address our concerns.”

Wyndham has engaged Choice and its advisors multiple times to explore the risks of a potential deal, Holmes said, but decided it would likely take more than a year to determine what would be required to clear antitrust review.

Choice Hotels International said it went public with its bid after six months of negotiations broke down.

“A few weeks ago, Choice and Wyndham were in a negotiable range on price and consideration, and both parties have a shared recognition of the value opportunity this potential transaction represents, said Choice CEO Patrick Pacious. ”We were therefore surprised and disappointed that Wyndham decided to disengage. While we would have preferred to continue discussions with Wyndham in private, following their unwillingness to proceed, we feel there is too much value for both companies’ franchisees, shareholders, associates, and guests to not continue pursuing this transaction.»

Choice, based in Rockville, Maryland, is offering