Hedge fund DE Shaw has become the second large Diversified Healthcare Trust shareholder to oppose the real estate investment trust’s merger with Office Properties Income Trust and is pushing the board to pursue better alternatives, according to a report by Reuters.
The report cites a regulatory filing made on Monday as revealing the DE Shaw, which owns a 6.1% stake in Diversified Healthcare Trust, told the company privately last month that it planned to vote against the deal.
Representatives of DE Shaw have also reportedly met twice with board members of Diversified Healthcare Trust, demonstrating a “willingness to work constructively” to find alternative financing options, according to the hedge fund.
Last month, Flat Footed LLC, which owns 9.4% of Diversified Healthcare Trust, said the proposed deal undervalues the REIT by 90% and that there are better alternatives to an all-share deal.
