UWM Raises Two Harbors Bid to $12.50 a Share, Challenging CrossCountry's $12 Deal
Updated
Updated · MarketWatch · May 11
UWM Raises Two Harbors Bid to $12.50 a Share, Challenging CrossCountry's $12 Deal
12 articles · Updated · MarketWatch · May 11
UWM lifted its offer for Two Harbors to $12.50 a share for holders electing cash, or 2.3328 UWMC shares, in a renewed push to derail the company's sale to CrossCountry Mortgage.
The higher bid tops CrossCountry's current $12-a-share agreement, which had already been increased from $11.30, sharpening the takeover contest around the mortgage lender.
Two Harbors has so far rejected UWM's approaches, citing financing, closing, operational and credibility risks tied to UWM's proposals.
In a Monday letter to shareholders, UWM argued its revised offer is clearly superior because it delivers more value to investors while reducing compensation to Two Harbors management versus the CrossCountry deal.
UWM's bid seems superior on paper. What hidden risks led to its unanimous rejection?
Why would a company's board reject a higher-priced offer for a rival's lower all-cash deal?