In an exclusive report, Reuters says the hospitality company may be looking to nominate Wyndham board members who would be more receptive to their takeover efforts.

 

Choice Looks to Board for Takeover Bid

Since May 2023, Choice Hotels has been publicly pursuing a merger with Wyndham Hotels & Resorts. After talks between the two for an amicable merger broke down, Choice submitted a $9.8 billion bid to their competitor in October 2023, which was rejected.

 

Now, the hotelier is looking for another path to gain in-roads towards their goal. According to Reuters, the company has purchased shares of Wyndham on the New York Stock Exchange, with reported intentions to get even more.

 

With their shares, Choice would be able to nominate persons to serve on Wyndham’s board of directors who could be more interested in a merger. Choice is reportedly interviewing potential nominees who could ascend to the board in January 2024.

 

An inside source also told Reuters that along with the board nominees, Choice could also submit a new bid to purchase Wyndham, signaling serious intentions to move forward with a merger. If the move is successful, it could potentially create a company with over 15,000 locations around the world. It would also compliment Choice’s acquisition of Radisson’s U.S. properties, completed in 2022.

 

If a merger were to commence, it could potentially receive scrutiny from federal authorities over antitrust and anti-competition laws. The U.S. Department of Justice previously broke up the Northeast Alliance between American Airlines and JetBlue, and is currently in trial over the proposed merger between JetBlue and Spirit Airlines.

 

Neither Choice Hotels nor Wyndham have publicly commented on the reports.

 

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Source: frugal travel guy