Two Harbors Investment Corp. (NYSE: TWO), a New York City-based mortgage servicing rights-focused REIT, announced that its board of directors received an unsolicited proposal to acquire all outstanding shares of the company’s common stock for $10.70 per share in cash.
The company did not identify the source of the bid, adding that it also included the $25.4 million termination fee that Two Harbors would need to pay to UWM Holdings Corporation (NYSE: UWMC) to terminate the companies’ previously announced merger agreement.
“The committee has not made a determination as to whether the unsolicited proposal is superior to the UWMC transaction,” said Two Harbors in a statement, referring to its board of directors. “TWO will engage further, including with respect to definitive documentation, to determine if a proposal that constitutes a “Company Superior Proposal” as defined in the UWMC merger agreement, can be reached. If the committee ultimately determines such a “Company Superior Proposal” has been received, UWMC will have three business days after such determination to negotiate with TWO and to propose any revisions to the UWMC transaction.”
UWM Holdings did not immediately issue a public comment on this development.
