Two Harbors Board Unanimously Rejects UWMC's Latest $12.50/Share Bid, Calling It 'Illusory and Predatory'
TWO sits 44% above its 52-week low of $8.78.
Summary
Two Harbors Investment Corp. (TWO) board has unanimously rejected UWM Holdings Corp.'s (UWMC) latest unsolicited acquisition proposal of $12.50 per share, labeling it "illusory, predatory, and unactionable." This definitive rejection follows UWMC's increased bid on May 11th and reinforces TWO's commitment to its amended all-cash merger agreement with CrossCountry Mortgage, LLC for $12.00 per share. The board highlighted that UWMC's proposal defaults to UWMC stock, currently valued significantly lower than the headline cash offer, and raised concerns about UWMC's financial condition and closing certainty. This decision comes despite a recent recommendation from proxy advisory firm ISS for TWO stockholders to vote against the CrossCountry merger. The strong rejection signals a firm resistance to UWMC's hostile takeover attempt, making it highly unlikely that the UWMC deal will proceed on its current terms. Investors will now focus on the upcoming shareholder vote for the CrossCountry merger and any further actions from UWMC or its shareholders.
At the time of this announcement, TWO was trading at $12.65 on NYSE in the Finance 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 neutral market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.