UWM Holdings' $12/Share Bid for Two Harbors Rejected; Board Reaffirms CrossCountry Merger
UWMC is trading near its 52-week low of $3.38 (5.3% above the low).
Summary
UWM Holdings Corp. (UWMC) has responded to Two Harbors Investment Corp.'s (TWO) rejection of its unsolicited $12.00 per share acquisition proposal. Two Harbors' board has reaffirmed its support for the previously announced $11.30 per share transaction with CrossCountry Mortgage, LLC. This development follows UWMC's unsolicited bid on May 1st, which aimed to disrupt Two Harbors' amended merger agreement with CrossCountry Mortgage from April 28th. The rejection of a higher bid by Two Harbors' board, in favor of a lower, existing deal, signals a strong preference for the CrossCountry transaction and significantly diminishes the likelihood of UWMC's hostile takeover succeeding. Traders will now watch for UWMC's next move, including whether they will increase their offer, withdraw, or explore other strategic options.
At the time of this announcement, UWMC was trading at $3.56 on NYSE in the Finance sector, with a market capitalization of approximately $5.8B. The 52-week trading range was $3.38 to $7.14. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.