Wyndham Rejects Choice Hotels’ $9.8 Billion Takeover Bid (2)

Wyndham Hotels & Resorts Inc. called Choice Hotels International Inc.’s takeover offer “underwhelming,” rejecting a proposal that would create a budget hotel behemoth.

Choice is offering to pay $90 a share in cash and stock, in a deal valued at about $9.8 billion including the assumption of debt, according to a statement Tuesday. The deal price is 30% more than Wyndham’s closing stock price on Monday.

While the companies have discussed the potential transaction for months, Wyndham’s decision to break off negotiations prompted Choice to take its offer public. Wyndham argued that the deal involved heightened regulatory risks, as ...