CrossCountry Mortgage Sweetens Two Harbors Buyout to $12.00 Cash Per Share
Summary
Two Harbors Investment Corp. and CrossCountry Mortgage, LLC have announced a further amendment to their merger agreement, increasing the all-cash consideration to $12.00 per share. This represents a $0.70 increase to CrossCountry's prior offer. This development follows an unsolicited $12.00 per share bid from UWM Holdings Corp. (UWMC) on May 1st, indicating CrossCountry has matched the competing offer to secure the deal. The article also notes that a $3.4 billion financing package is fully committed and over half of the necessary regulatory approvals have been obtained, significantly de-risking the transaction. This increased offer provides greater certainty and enhanced value for Two Harbors shareholders, potentially concluding the bidding contest. Investors should now monitor for any further responses from UWMC or the finalization of the CrossCountry merger.
At the time of this announcement, TWO was trading at $12.38 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $1.3B. The 52-week trading range was $8.78 to $14.17. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Reuters.