(STAY Alert) Johnson Fistel Investigates Proposed Sale of Extended Stay; Are Shareholders Getting a Fair Deal?

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Mar 15, 2021, 09:44 ET

SAN DIEGO, March 15, 2021 /PRNewswire/ -- Shareholder rights law firm Johnson Fistel, LLP has launched an investigation into whether the board members of Extended Stay America, Inc., (NASDAQ: STAY) breached their fiduciary duties in connection with the proposed sale of the Company to Blackstone Real Estate Partners ("Blackstone") and Starwood Capital Group ("Starwood Capital").

On March 15, 2021, Extended Stay announced that it had entered into a definitive merger agreement with Blackstone and Starwood Capital. Under the terms of the definitive merger agreement, Blackstone and Starwood Capital will acquire all of the issued and outstanding shares of Extended Stay common stock for $19.50 per share in cash.

The investigation concerns whether the Extended Stay board failed to satisfy its duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for Extended Stay shares of common stock. Nationally recognized Johnson Fistel is investigating whether the proposed deal represents adequate consideration, especially given analysts' projections for future revenue growth.

If you are a shareholder of Extended Stay and believe the proposed buyout price is too low or you're interested in learning more about the investigation, please contact lead analyst Jim Baker ([email protected]) at 619-814-4471. If emailing, please include a phone number.

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About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit https://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.

Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
[email protected]

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SOURCE Johnson Fistel, LLP