Global hospitality company Hyatt Hotels Corp. backed off from making a takeover offer for NH Hotel Group SA after rival suitor Minor International PCL disclosed an increased stake in the Spanish hotel operator, Bloomberg News reported.
Hyatt recently indicated its interest in acquiring NH Hotel, which is also fielding a tender offer from Thailand's Minor International. Minor International said July 27 that it is set to control 172,379,103 shares in NH Hotel, for a 44% stake.
"Based on the information we now have, we believe that the path to a successful tender offer by Hyatt under the terms expressed in our letter has narrowed to a point of being impractical," Hyatt President and CEO Mark Hoplamazian said in a July 29 letter, according to the publication.
Hoplamazian, however, noted in the letter that he believes Minor International's bid undervalues NH Hotel, adding that Hyatt is ready to have discussions with NH Hotel "to pursue other potential paths to unlock value for NH shareholders."
Minor International's potential takeover is subject to NH Hotel shareholders' approval at its Aug. 9 annual general meeting.