Deals
Blackstone, Starwood Boost Extended Stay Bid Amid Opposition
- Private equity firms increase takeover price to $20.50 a share
- Investors Tarsadia, SouthernSun still oppose the deal
This article is for subscribers only.
Blackstone Group Inc. and Starwood Capital Group increased their offer to buy Extended Stay America Inc., but it wasn’t enough for two sizable shareholders.
The private equity firms agreed to increase their offer by $1 to $20.50 a share, a 21% premium on where it shares closed the day prior to the original offer being announced, according to a statement Tuesday. That came after Glass Lewis & Co. and Institutional Shareholder Services Inc. came out in opposition to the deal last week, agreeing with a group of shareholders who had questioned the timing, process and price.