LOS ANGELES Reuters recently reported that a second party has expressed interest in buying Wyndham International, setting the stage for a potential bidding war with rival suitor Bass Plc.
After their initial contact, according to the report, Wyndham provided Bass with some data and Bass submitted an offer. Wyndham dismissed the bid, calling it too low, and invited Bass to review more extensive data over the past week. Bass officials performed the review, according to the Reuters source, and will likely submit a revised bid in the next week. In the meantime, however, another group learned of the activity and told Wyndham it might be interested in making a bid, said the source, who was not aware of the potential bidder s identity.
Any sale of Wyndham would have to be approved by Purchase, NY-based Apollo Investment Fund, which owns more than 30% of the company. Apollo picked up its stake in Wyndham in 1999 at what was then considered to be a bargain-basement price of less than $10 per share. Wyndham stock had traded as high as $24 per share over the past three years. Since Apollo s purchase, however, the stock has drifted downward despite operating and profit improvements at the company. (5/21/01)
SOURCE:Reuters