The drama involving UWM Holdings Corporation’s (NYSE: UWMC) attempt to acquire Two Harbors Investment Corp. (NYSE: TWO) took a new twist as the Two Harbors issued a bold challenge to its persistent suitor.
While the board of Two Harbors said it continued to urge stockholders to vote for its planned acquisition by CrossCountry Mortgage LLC (CCM), it also held up UWM’s offer of “$12.50 per share in cash, or if a stockholder chooses, 2.3328 shares of UWMC stock” by issuing a new demand.
“The TWO Board has been clear in what it requires: all cash, to all stockholders, no stock component,” said Two Harbors in a statement. “Fully committed financing to cover the entire $12.50 per share in cash, including all termination and transaction fees, along with definitive documents. TWO is prepared to engage immediately and directly, CEO and Chairman to CEO and Chairman, to discuss that proposal. CCM has agreed to waive the non-solicitation provisions of its merger agreement through close of business on Friday, June 12, to permit this engagement.”
Two Harbors pointed to the UWM closing at an all-time low of $2.59 per share on June 5 as evidence that the company’s bid was not serious. The company, which noted CCM is offering “$12.00 per share in all cash to every stockholder, plus a pro-rated stub dividend for the quarter in which the transaction closes,” added that UWM should “step aside” if it will not meet its request and allow “stockholders to vote on the only actionable transaction before them.”
UWM did not immediately comment on the Two Harbors statement.
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