UWM Holdings Corp. (NYSE: UWMC) has issued a new plea to stockholders of Two Harbors Investment Corp. (NYSE: TWO) to cancel the company’s planned merger with CrossCountry Mortgage LLC (CCM).
In an open letter to Two Harbors stockholders, UWM Corporate Secretary Adam Wolfe accused the company’s leadership of “prolonging their misguided attempt to salvage an inferior CCM deal that has twice failed to garner the necessary stockholder support” while continuing to “wear down stockholders into accepting a less valuable transaction.”
Wolfe reiterated his company’s proposal to acquire all outstanding Two Harbors shares for $12.50 per share in cash or, if the stockholder prefers, 2.3328 shares of UWM stock. He also added his company is ready to sweeten the deal further.
“For example, UWMC is willing to consider an adjustment to its default election mechanism such that smaller stockholders who hold less than a maximum number of shares would receive whichever is the higher value between cash or UWMC shares, guaranteeing the default election will provide maximum value to smaller retail stockholders,” Wolfe wrote. “Other enhancements can only be realized through open engagement. All it takes is making a determination that our offer could be superior and picking up the phone to call us.”
Neither Two Harbors nor CCM issued an immediate response to Wolfe’s letter.
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