UWM Holdings Corp. (NYSE: UWMC) has upped its efforts merger with Two Harbors Investment Corp. (NYSE: TWO) with a new proposal to acquire all outstanding shares of Two Harbors for $12.50 per share in cash or 2.3328 shares of UWMC stock.
The new offer is higher than the $12.00 per share in cash offer from CrossCountry Mortgage LLC (CCM), which previously offered $11.30 per share. The 70-cent increase by CCM was made to match a $12.00 per share offer that UWM put forth.
In a letter to Two Harbor shareholders, UWM Corporate Secretary Adam Wolfe urged them to reject the proposed CCM merger that will be voted on at a May 19 special meeting of stockholders.
“Our offer is again a clearly superior offer, providing higher value for stockholders on a cash basis, preserving optionality for equity consideration for those that prefer it, and maintaining a tight timeline to close,” Wolfe wrote. “But you may never realize maximum value if your board remains unwilling to negotiate. Seemingly, the only way to get them to do so is to vote No at the upcoming meeting. Why is your board blocking a mechanism for true price discovery?”
UWM and Two Harbor had initially agreed to merge, only to have the deal jettisoned when the latter accepted CCM’s last-minute counteroffer.
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