Choice Hotels calls off its Wyndham Hotels acquisition

After months of begging, pleading, and attempted strong-arming, the company is calling off its attempt to merge with rival Wyndham Hotels and Resorts

Choice Hotels scrapped its nearly year-long pursuit of rival Wyndham Hotels & Resorts, after repeated rejections and failing to garner enough support from Wyndham's shareholders for its hostile bid.

Key takeaways

• Choice first approached Wyndham in April last year and disclosed its cash-and-stock offer in October. Based on the closing share price of the companies on Friday, the offer was worth $89 per share, or about $7.2 billion;
• In December, Choice appealed directly to Wyndham's shareholders to break a stalemate in the takeover battle, by unveiling an exchange offer for Wyndham's stock;
• Wyndham has repeatedly rebuffed Choice's bid as low-premium and fraught with antitrust risk. Wyndham, based in Parsippany, New Jersey, also raised concerns about the combined company carrying too much debt, and a slowdown in Choice's business.

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