UWM Holdings Launches $12/Share Takeover Bid for Two Harbors
TWO sits 31% above its 52-week low of $8.78.
Summary
UWM Holdings Corp. (UWMC) has made an unsolicited $12-per-share bid for Two Harbors Investment Corp. (TWO), communicating the offer directly to Two Harbors' shareholders via an open letter. The proposal is backed by a $1.3 billion bridge facility from Mizuho Bank and is presented as superior to Two Harbors' existing deal with CrossCountry. This represents a significant M&A event for Two Harbors, potentially offering a substantial premium to its current trading price and triggering a change in control. For UWM Holdings, it signifies a material strategic acquisition. Traders will be closely watching Two Harbors' board response, the reaction from its shareholders, and the status of the competing CrossCountry deal, as this could lead to a bidding war or a revised offer.
At the time of this announcement, TWO was trading at $11.54 on NYSE in the Finance sector, with a market capitalization of approximately $1.2B. 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.