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So much for Employees being the first to know [Jun. 14th, 2005|07:32 am]
Mike

To all Wyndham Team Members:

Many of you may have heard or read about rumors currently circulating in the media about Wyndham. Wyndham has never commented on market rumors or speculation in the past and we will continue to strictly uphold this policy.

While I know these rumors can be distracting, I urge you to remain focused on our business – maximizing our operations and brand while serving the thousands of guests that walk through our doors every day.

As has always been the case, over the past six years since I’ve been here in Dallas, when we have important information to share; you will hear it from me first. We truly appreciate your role in making Wyndham one of the top hotel brands in the world today.

Best regards,

Fred



DALLAS (June 14, 2005) – Wyndham International, Inc. (AMEX:WBR) announced today that it has entered into a definitive Merger Agreement to be acquired by an affiliate of The Blackstone Group in a transaction valued at $3.24 billion.

Under the terms of the Merger Agreement, Blackstone will acquire all of the outstanding Common Stock of Wyndham for $1.15 per share in cash. The board of directors of Wyndham unanimously approved the Merger Agreement and recommended approval by its shareholders.

Fred J. Kleisner, Wyndham’s chairman, president and chief executive officer, said “Wyndham has followed a strategic approach to: simplify our corporate structure, refinance our debt and sell all non-strategic assets. We have created a stream-lined organization centered around 32 high quality owned and leased hotels and destination resorts plus the world’s pre-eminent spa, the Golden Door. All of this has made Wyndham a much desired and sought after company in today’s real estate market. In that regard, we are pleased to have signed a merger agreement with Blackstone.”

Jonathan D. Gray, senior managing director of The Blackstone Group, said

“We are excited to acquire Wyndham International with its terrific collection of employees, properties and brands. We look forward to working with Wyndham’s franchisees, owners and partners.”

The completion of the Merger Agreement is subject to various customary closing conditions, including the approval of Wyndham’s stockholders and the expiration of the applicable waiting period under the Hart-Scott-Rodino Act. Completion of the Merger Agreement is not subject to the receipt of financing by Blackstone. The closing of the Merger Agreement is expected to occur during the fourth quarter of 2005.

Wyndham previously announced the entry into a definitive Recapitalization Agreement with certain investors of Wyndham’s Series B Preferred Stock in which all outstanding shares of Series A and Series B Preferred Stock would be converted into common stock. Under the terms of the Merger Agreement, the holders of shares of Preferred Stock will receive $72.17 per share in cash, subject to potential adjustment to reflect additional shares that may be issued as dividends after June 30, 2005.

Bear, Stearns & Co. Inc. acted as financial advisor to Wyndham in connection with the strategic review and this transaction. J.P. Morgan Securities Inc. provided a fairness opinion in connection with this transaction. Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisor to Wyndham. Simpson Thacher & Bartlett LLP acted as legal advisor to Blackstone.


At least I have a few months to find a new job.
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Comments:
[User Picture]From: bearpawly
2005-06-14 01:19 pm (UTC)
Oh, yeah.

I heard this on KRLD this morning on the drive to work....and thought of you.
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[User Picture]From: txlthrson
2005-06-14 01:31 pm (UTC)
Yea. not many people are work were surprised about it. We all suspected that this was coming. I'm curious to see what is going to happen.
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[User Picture]From: andrewhime
2005-06-14 03:13 pm (UTC)
So this is definitely a bad thing?
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[User Picture]From: txlthrson
2005-06-14 03:57 pm (UTC)

No Necessarily a Bad thing

But Blackstone Group also owns Amerisuites, Wellesley Inns & Suites, Prime Hotels & Resorts, Extended Stay America, and Boca Resorts. I wouldnt be surprised if they combined all of these brands into one hotel branded company.
As far as my job goes, I am an analyst for a call center. More than likely my job will be eliminated as reporting structures are merged between Wyndham and Blackstone.
One never knows what may happen though. I'm just hoping that if I do get let go, that it is within the 90 days of the deal becoming final. I'll be entitled to almost 6 months severance. If I'm let go after the 90 days, then my severance will depend on what the new company decides to give me.
Just taking a wait and see approach right now, but starting to get my resume out there just in case.
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[User Picture]From: andrewhime
2005-06-14 04:00 pm (UTC)

Re: No Necessarily a Bad thing

Considering Accor has never united behind a single brand, which would be a logical thing to do... I wouldn't hold my breath on that happening here either.

But then, I'm an outsider with casual knowledge.
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