La Quinta's Stock Falls As Largest Shareholder Trims Stake

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Shares of La Quinta Holdings slumped 2.4% in after-hours trade Monday, after the hotel operator said The Blackstone Group, its largest shareholder, was cutting its stake by nearly a third. La Quinta said affiliates of Blackstone have launched an offering of 17.5 million shares, and have granted the the underwriters of the offering the option to buy up to an additional 2.625 million shares. The most recent filings showed that Blackstone held 59.04 million shares of La Quinta, or 45.11% of the shares outstanding, according to FactSet. La Quinta said it would not receive any proceeds from the sale of shares. The stock has gained 8.1% year to date through Monday's close, while the S&P 500 has edged up 2.2%.

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