NEW YORK (Reuters) - Hotel owner Wyndham Worldwide Corp on Monday dropped plans to issue up to $200 million in stock, citing negative market reaction to the idea.
Wyndham Chairman and CEO Stephen Holmes said the company would continue to actively manage its business to maximize cash flow from operations and strengthen its financial position.
"We have adequate liquidity to meet the operating needs of the business," he said in a statement.
Wyndham shares fell nearly 30 percent on Friday after prominent hedge fund manager Leon Cooperman criticized the proposed stock offering. Cooperman said the possibility that Wyndham would issue stock at prices below previous buybacks was "ridiculous."
Shares of Wyndham, operator of hotel and motel chains such as Ramada, Days Inn and Super 8, closed at $4.18 on Friday on the New York Stock Exchange, compared with a 52-week high of $24.43.
Holmes said on Monday that the plan was dropped following the "strongly negative" market reaction and "we appreciate the feedback from our shareholders."
(Reporting by Martha Graybow; Editing by Christian Wiessner)
