UWM's Acquisition Proposal#
UWM Holdings Corporation has publicly responded to Two Harbors Investment Corp.’s rejection of its acquisition offer of $12.00 per share. This proposal was aimed at acquiring Two Harbors, but the board opted to support its existing deal with CrossCountry Mortgage, which offers $11.30 per share.
Details of the Offer#
UWM's proposal included both a cash option of $12.00 per share and a stock option. Currently, Two Harbors shares are trading at $12.23, reflecting a significant increase of nearly 14% over the past week and 37% over the last six months. UWM has secured financing for this acquisition through a $1.3 billion bridge loan from Mizuho Bank, which does not have certain typical conditions that could complicate the deal.
Background and Future Steps#
Interestingly, Two Harbors' board had previously shown support for a transaction with UWM months ago. In light of the recent rejection, UWM is evaluating its next steps regarding the situation. The company emphasizes that the completion of any acquisition would depend on various factors, including approval from shareholders and regulatory bodies.
Recent Earnings Report#
In a related development, Two Harbors recently announced its first-quarter earnings for 2026, which exceeded expectations with earnings per share of $0.34, surpassing the forecast of $0.2912. However, the company reported a revenue shortfall, with a loss of $6.51 million against an expected gain of $2.63 million. Despite this mixed performance, the market reacted positively to the earnings surprise.
In summary, while UWM's acquisition proposal offers a higher value than CrossCountry's current offer, Two Harbors' board has determined that it does not constitute a superior proposal under their existing agreement.