A second shareholder has come forward formally expressing opposition to real estate investment trust Diversified Healthcare Trust’s proposed merger with Office Properties Income Trust, which was announced in April.

The merger, if approved by shareholders, is expected to be finalized in the third quarter, resulting in a REIT named Diversified Properties Trust.

Hedge fund D.E. Shaw, which owns a 6.1% stake in DHC, on Monday filed a statement with the Securities and Exchange Commission formally opposing the merger. The company said that it notified DHC privately in May that it plans to vote against the deal at an upcoming special meeting, the date of which has not been announced.

D.E. Shaw told the SEC that DHC should “pursue superior alternative actions” and said that its representatives spoke with DHC board members on May 24 and June 7 to underscore a “willingness to work constructively with the Issuer to pursue financing options.”

The investor joins shareholder Flat Footed, which filed a preliminary proxy statement with the SEC last week. Flat Footed has a 9.4% stake in Newton, MA-based DHC.

In the proposed deal, OPI would acquire all of the outstanding common shares of DHC in an all-share transaction, which was unanimously recommended by special committees of the respective boards of DHC and OPI and then unanimously approved by the respective full boards. It is subject to the approval of DHC and OPI shareholders and other customary closing conditions.

“Current conditions raise substantial doubt about our company’s ability to continue as a going concern as a stand-alone company,” DHC President and CEO Jennifer Francis said in May on the REIT’s first-quarter earnings call.

“The company is currently restricted from issuing or refinancing debt due to debt incurrence covenants, and we do not expect to be in compliance until mid-2024. We have $700 million of debt retiring in 2024 and no ability to refinance it,” she had relayed on an earlier conference call after the merger announcement. “And while the SHOP [seniors housing operating portfolio] recovery is underway and gaining momentum, it requires considerable capital to support its turnaround — a turnaround that is just not happening as quickly as is necessary.”

DHC’s seniors housing operating portfolio includes 237 communities with 25,346 living units, according to a presentation posted online in April in conjunction with the merger news. As of the fourth quarter of 2022, more than 100 of those communities were Five Star Senior Living communities managed by AlerisLife, according to a March presentation posted online. Additional operators with a presence in DHC’s SHOP, according to the March presentation, include Cedarhurst Senior Living, Charter Senior Living, IntegraCare Senior Living, Life Care Services, Navion Senior Solutions, Northstar Senior Living, Oaks-Caravita Senior Care, Omega Senior Living, Oaks Senior Living, Phoenix Senior Living, Stellar Senior Living and The RMR Group. DHC’s senior living portfolio also includes 27 leased communities with a combined 2,062 units and tenants such as Brookdale Senior Living.

The shareholder statement filed Monday was filed to the SEC on behalf of Delaware limited liability companies D. E. Shaw Galvanic Portfolios LLC; D. E. Shaw Manager II LLC, D. E. Shaw Adviser II LLC; D. E. Shaw & Co. LLC; D. E. Shaw & Co. LLP; and David E. Shaw, who does not own any shares directly.

DHC’s stock price climbed 5.6% on Monday to trade at $2.81, Reuters reported.