Deals
Blackstone, Starwood Deal for Extended Stay Opposed by ISS
- Glass Lewis also came out in opposition of the takeover
- Some shareholders have raised concerns about acquisition
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A group of investors opposed to a $6 billion takeover of hotel company Extended Stay America Inc. got a boost Friday with two prominent shareholder advisory firms coming out against the deal.
Institutional Shareholder Services Inc. and Glass Lewis & Co. urged investors to oppose the acquisition by Blackstone Group Inc. and Starwood Capital Group because they agreed there were issues with the process and that the terms undervalue the company at a time when the lodging industry is starting to recover from the pandemic.