Updated
Updated · Bloomberg · Jul 2
Two Harbors Shareholders Approve CrossCountry Merger, Rejecting UWM's Rival Bid After Months
Updated
Updated · Bloomberg · Jul 2

Two Harbors Shareholders Approve CrossCountry Merger, Rejecting UWM's Rival Bid After Months

3 articles · Updated · Bloomberg · Jul 2

Summary

  • Two Harbors shareholders on Thursday approved the mortgage servicer's merger with CrossCountry Mortgage, ending a months-long contest that sidelined UWM Holdings' competing approach.
  • The preliminary vote hands CrossCountry the deal after repeated delays and a drawn-out fight over Two Harbors, which UWM had pursued as a way to counter its steep stock decline.
  • UWM said the outcome closes the saga, while maintaining its offers were superior and accusing Two Harbors' board of inappropriate conduct.
  • The vote removes a key source of uncertainty around Two Harbors and marks a setback for Mat Ishbia's effort to use the acquisition to bolster UWM.

Insights

Was the Two Harbors merger a win for shareholders, or a board's defense against a 'predatory' rival?
Why did Two Harbors' board defy three proxy advisors to accept what a rival called an inferior merger deal?