Friday, January 12, 2024
In a significant development, Wyndham Hotels & Resorts, the world’s largest hotel franchising company, has officially confirmed the receipt of a 40-page and 65-topic ‘Second Request’ from the Federal Trade Commission (FTC) regarding Choice Hotels International, Inc.’s unsolicited hostile offer to acquire Wyndham.
The ‘Second Request,’ a rare occurrence in FTC reviews, initiates a complex and extended regulatory process. Wyndham’s Chairman of the Board, Stephen P. Holmes, expressed the company’s long-standing anticipation of this regulatory scrutiny. However, he criticized Choice for downplaying the risks and misjudging the FTC’s approach to defining the relevant market.
Holmes emphasized that the protracted review process, characterized by an uncertain timeline and outcome, would not only reduce the value of Choice’s offer but also disrupt Wyndham’s business operations. Despite these challenges, Wyndham remains committed to executing its standalone strategy, ensuring shareholders receive long-term, sustainable value.
The FTC’s ‘Second Request’ extends the waiting period imposed by the Hart-Scott-Rodino Antitrust Improvements Act of 1976. This regulatory development underscores the complexity of the proposed acquisition and introduces an element of uncertainty regarding its eventual closure.
Independent third parties share Wyndham’s concerns, highlighting potential risks and implications for shareholders. The company pledges full compliance with the FTC’s Second Request, obliging the submission of extensive data and documents.
Financial advisors Deutsche Bank Securities Inc. and PJT Partners, along with legal advisors Kirkland & Ellis LLP and Arnold & Porter Kaye Scholer LLP, are guiding Wyndham through this regulatory challenge.
As the situation unfolds, Wyndham aims to navigate the intricate regulatory landscape and continue its commitment to delivering value to shareholders. The company’s emphasis on transparency and compliance with regulatory processes remains steadfast, ensuring a thorough evaluation of Choice’s unsolicited offer.
Sunday, April 28, 2024
Sunday, April 28, 2024
Sunday, April 28, 2024
