STAY - Why Shares of Extended Stay America Jumped 14.8% on Monday
Shares of Extended Stay America, Inc. (NASDAQ: STAY) jumped as much as 14.8% in trading on Monday after the company announced it would be acquired. Shares traded in a very small range by mid-day and are up 13.6% at 3:30 p.m. EDT.
Extended Stay America announced that a 50/50 joint venture between funds backed by Blackstone Real Estate Partners and Starwood Capital Group would acquire the company for $19.50 per share, or about $6 billion total, paid in cash. The price is a 23.3% premium over the 30-day, volume-weighted average share price, although it's a smaller premium from Friday's close.
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Why Shares of Extended Stay America Jumped 14.8% on Monday