Lawsuit Seeks Injunction to Halt Two Harbors' $12 Merger Vote, Citing Misleading Proxy
TWO sits 44% above its 52-week low of $8.78.
Summary
Two Harbors Investment Corp. is facing a lawsuit seeking an injunction to block its upcoming May 19 stockholder vote on the $12 cash merger with CrossCountry Mortgage. The plaintiff alleges the proxy statement is materially misleading, omitting key facts regarding the board's preference for the CrossCountry deal over higher offers from UWMC, citing management entrenchment and golden parachutes. This legal challenge introduces significant uncertainty and potential delays to a merger process that has already been highly contested, with multiple competing bids and a recent 'against' recommendation from ISS. Investors should closely monitor the scheduled court hearings on May 15 and May 18, as their outcome will be critical for the merger's future.
At the time of this announcement, TWO was trading at $12.60 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 negative market sentiment and an importance score of 9 out of 10. Source: Wiseek News.