2023-08-14 14:59:47 ET
Proxy adviser Glass Lewis joined fellow proxy firm ISS in recommending that Diversified Healthcare ( NASDAQ: DHC ) holders vote against its deal with healthcare REIT Office Properties Income Trust ( NASDAQ: OPI ).
Glass Lewis said "the underlying industrial logic appears deeply flawed, with few obvious synergies between DHC’s senior housing portfolio and OPI’s existing office property exposure," the proxy firm said in its report, according to a statement from Flat Footed LLC, a top holder of DHC, which is opposed to the deal.
The recommendations come as DHC and OPI holders are scheduled to vote on the transaction on Aug. 30. The REIT has received pushback from some large holders, including D.E. Shaw and Flat Footed LLC , which earlier in June filed a proxy opposing the deal. D.E. Shaw also sent a private letter in June to the board of DHC about its opposition to the deal.
In late June, DHC holder ABP Trust disclosed owning 23.3 million shares, or a 9.7% stake, and said it plans to vote in favor of the OPI transaction , according to a 13D filing from ABP Trust and Adam Portnoy on Tuesday. Portnoy is the CEO of RMR Group ( RMR ), which is the external manager of the DHC and OPI.
More on Diversified Health/Office Properties
- Office Properties: Merger Update With Diversified Healthcare And Q2-2023 Results
- Diversified Healthcare: Is It Actually Worth Over $9.00?
- Nightmare Deal Between Office Properties Income Trust And Diversified Healthcare Trust
- RMR Brings Diversified Healthcare And Office Properties Together
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Proxy adviser Glass Lewis recommends Diversified Healthcare holders vote against OPI deal