STAY - Extended Stay America shareholder files proxy to oppose sale to Blackstone JV

Tarsadia Capital, one of Extended Stay America's (STAY) largest shareholders with ~3.9% of the REIT's shares, files a preliminary proxy statement to solicit votes against the proposed sale of Extended Stay America and ESH Hospitality to Blackstone (BX) Real Estate Partners and Starwood Capital Group.The shareholder points out that two of ESH Hospitality's directors, Neil Brown and Simon Turner, voted against the merger and insisted that their opposition be disclosed to shareholders.Tarsadia said it agrees with Brown and Turner that it's the wrong time to sell the paired entities and the the merger price is "insufficient."The investment firm said in March that it would oppose the deal because it "severely undervalues the REIT" and deprives current shareholders of the lodging sector recovery.Tarsadia also said that the boards of STAY and ESH Hospitality relied on a flawed fairness opinion and claims the boards failed to review all potential strategic alternatives.STAY's shares

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Extended Stay America shareholder files proxy to oppose sale to Blackstone JV