BX - Glass Lewis continues to recommend Extended Stay holders reject proposed sale

Photo by hapabapa/iStock Editorial via Getty Images While proxy advisory firm ISS now recommends that Extended Stay (STAY) shareholders vote in favor of the REIT's proposed sale to Blackstone (BX) Real Estate and Starwood Capital, Glass Lewis continues to recommend that shareholders reject the the proposed deal, says STAY shareholder Tarsadia Capital. The Glass Lewis report evaluating Blackstone and Starwood's revised offer of $20.50 per STAY share isn't sufficient "to warrant supporting the proposed transaction at this time." "In our view, the price increase of $1.00 per share, or approximately 5.1%, does not go far enough to address outstanding concerns with the deal process, timing and valuation," according to the Glass Lewis report. Tarsadia also points out that ISS issued a "cautionary" support recommendation for the transaction. Last week, STAY holder Zimmer Partners said it plans to vote in favor of the sale.

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Glass Lewis continues to recommend Extended Stay holders reject proposed sale