STAY - Extended Stay America stock jumps higher than merger price it agreed to
Extended Stay America (STAY) stock rises 16% in premarket trading to $19.70, exceeding the $19.50 per paired share price Blackstone (BX) and Starwood Capital agreed to pay for the REIT in a definitive agreement.That implies that some investors expect Extended Stay will extract a higher price.That $19.50 per share price represents a 15% premium to STAY's closing price of $16.94 on Friday, March 12."After a thorough review of the Company’s business plan, the Boards concluded that the immediate cash premium offered by this transaction is compelling for stockholders," said Extended Stay Chairman Doug Geoga.In connection with the transaction, an affiliate of Starwood Capital, which owns ~9.4% of STAY’s outstanding paired shares, has entered into a support agreement whereby it has agreed to vote its shares in favor of the transaction.STAY doesn't expect to pay its regular quarterly distribution while the transaction is pending, except for the previously declared 9-cent distribution on March
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Extended Stay America stock jumps higher than merger price it agreed to