ISS asks Extended Stay shareholders to vote for Blackstone and Starwood’s new offer

(Reuters) – Proxy adviser Institutional Shareholder Services has recommended shareholders of Extended Stay America to vote for Blackstone Group and Starwood Capital’s raised takeover offer, the hotel operator said on Friday.

ISS, which previously opposed the $6 billion deal on valuation grounds, has reversed its stance after the private equity firms increased their offer for Extended Stay by $1 per share to $20.50 per share earlier this week.

“We are also pleased to note that the transaction is now supported by a number of our large shareholders who had previously expressed concerns,” Extended Stay Chairman Doug Geoga said in a statement.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Krishna Chandra Eluri)