Extended Stay Stockholders Sue In Del. To Probe $6B Sale

Law360 (June 11, 2021, 8:01 PM EDT) -- Two Extended Stay America Inc. stockholders have sued in Delaware's Chancery Court for documents on a planned $6 billion sale of the 652-hotel chain to funds managed by Blackstone Group and Starwood Capital, saying insider self-interest and buyer clout may have tainted the deal.

Stockholder Jacob Wheeler filed an action under Delaware's general corporation law provisions for stockholder record inspection rights on Friday, one day after a similar demand by the City of Warren General Employees' Retirement System.

Both actions hit the court as Extended Stay and its paired-share real estate investment trust, ESH Hospitality, Inc., were tallying preliminary results of...

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