SPG Stock – Extended Stay Agrees to Be Taken Private. Investors Don’t Like What That Does to the Stock.
Investors see some room for improvement in a deal for Extended Stay America.
Earlier this month, lodging chain Extended Stay (ticker: STAY) said it agreed to be taken private for $6 billion cash by a partnership of Blackstone Group (BX) and private-investment firm Starwood Capital Group. The deal, which values Extended Stay stock at $19.50 apiece, offered a nice premium to recent pandemic trading levels, but is 50 cents a share lower than the company’s initial-public-offering price in November 2013.