PARSIPPANY, N.J. - Wyndham Hotels & Resorts (NYSE: NYSE:WH), a leading global hotel franchising company, has received a detailed 'Second Request' from the Federal Trade Commission (FTC) concerning the unsolicited acquisition proposal from Choice Hotels (NYSE:CHH) International, Inc. (NYSE: CHH). This request indicates a deeper investigation into the potential antitrust implications of the deal.
The 'Second Request' involves an extensive 40-page, 65-topic questionnaire that will significantly extend the review period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Wyndham's Chairman of the Board, Stephen P. Holmes, expressed that the company had anticipated this level of scrutiny and emphasized the risks to shareholders posed by Choice's proposal. Holmes noted the prolonged and uncertain review process could devalue Choice's offer and disrupt Wyndham's operations.
Despite these challenges, Wyndham pledges to comply with the FTC's request and continue its focus on executing its standalone strategy aimed at delivering long-term value to its shareholders. The company's advisory team includes Deutsche Bank Securities Inc. and PJT Partners (NYSE:PJT) as financial advisors, with Kirkland & Ellis LLP and Arnold & Porter Kaye Scholer LLP as legal advisors.
Wyndham Hotels & Resorts, with roughly 9,100 hotels in over 95 countries, operates a diverse portfolio of 24 hotel brands and boasts an award-winning loyalty program with approximately 105 million enrolled members.
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