© Reuters. FILE PHOTO: The company logo for Choice Hotels is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., February 17, 2017. REUTERS/Brendan McDermid/File Photo
(Reuters) – Budget hotel operator Wyndham Hotels & Resorts (NYSE:) said on Thursday it has received a second request from the U.S. Federal Trade Commission seeking more information related to a $7.8 billion takeover offer by Choice Hotels (NYSE:).
“The second request, which is issued in only around 1% of deals reviewed by the FTC, marks the start of a complex, lengthy process… with an uncertain outcome and no guarantee of closing,” Wyndham Chairman Stephen Holmes said.
Wyndham in December requested its shareholders to reject the hostile bid launched by Choice in October, citing lower valuation and a long regulatory review.
Wyndham has repeatedly highlighted that the offer undervalues its business and carries regulatory risks. It has also pointed to a combined company’s likely high debt level, as well as the slower growth prospects of Choice’s business.