NexPoint Diversified Real Estate Trust (NXDT) on Friday urged the board of United Development Funding IV, or UDF IV, to postpone the special shareholders meeting to vote on its proposed merger with Ready Capital (RC), as it is preparing a competing proposal.

NexPoint said its concerns about the proposed merger include the risk of further erosion of Ready Capital's stock price, which is a significant percentage of the consideration for the deal. The investment trust also said that the proposed merger provides benefits to the UDF IV board and management "that do not reflect the interest of UDF IV shareholders."

NexPoint requested a 30-day postponement of the special meeting to April 4, in order for the UDF IV board to be able to adequately review a competing proposal it is putting together. Even with the postponement, the proposed merger could still be completed by April 15, the deadline under the merger agreement, the investment trust said.

NexPoint, Ready Capital, and UDF IV did not immediately reply to a request for comment from MT Newswires.

NexPoint Diversified shares rose 0.6% in recent trading, while Ready Capital was up 0.8%.

Price: 4.99, Change: -0.08, Percent Change: -1.58