Two Harbors Board Rejects $12.50 Offer, UWM Warns Dividend Double Counting
TWO•Two Harbors' board rejected UWM’s May 11 offer to buy the company for $12.50 in cash or 2.3328 UWM shares, opting for a CrossCountry Mortgage merger. UWM says the $0.34 Q2 dividend is double-counted in the CrossCountry value and urges shareholders to vote down the merger and advisory proposals.
1. Board Rejects UWM Offer
Two Harbors Investment Corp.'s board declined to engage with UWM Holdings’ May 11 proposal to acquire the company for $12.50 per share in cash or 2.3328 UWM shares, and instead reaffirmed its support for a merger with CrossCountry Mortgage.
2. UWM Highlights Valuation Discrepancy
UWM asserts the proposed CrossCountry merger improperly counts a $0.34 second-quarter dividend in its valuation, arguing that an apples-to-apples comparison shows UWM’s offer remains superior in total value.
3. Shareholder Voting Campaign
UWM is urging Two Harbors shareholders to vote against the CrossCountry merger, the non-binding compensation advisory proposal and the adjournment proposal using its blue proxy card to preserve the opportunity for its superior bid.
