UWM Holdings Calls on Two Harbors Investors to Support Merger
UWM Holdings (UWMC) issued a statement regarding the second adjournment of the special meeting of the stockholders of Two Harbors Investment (TWO) to vote on Two's proposed merger with CrossCountry Mortgage, stating in part: "Today's second adjournment demonstrates unequivocally that TWO stockholders understand what their Board refuses to acknowledge: engagement with UWMC is the only way that TWO stockholders can be assured of getting the best value. It should be abundantly clear by now that TWO stockholders do not want the inferior CCM transaction, which CCM has declared to be its best and final offer, nor do they want more adjournments and delays. It's high time the TWO Board listens to their stockholders and engages in good faith negotiations with UWMC - something which the TWO Board, contrary to its assertions, has steadfastly refused to do for months. As the TWO Board stated itself, it 'will, consistent with its fiduciary duties, consider in good faith any actionable all-cash, fully financed proposal from UWMC.' UWMC has made a proposal meeting all such requirements - a superior offer of $12.50 per share in cash or 2.3328 shares of UWMC stock compared to CCM's best and final offer of $12.00 per share, with a pro-rated stub dividend - and if TWO disagrees in any respect, UWMC invites TWO to open, good faith discussions to achieve the best result for TWO stockholders. In fact, it is the TWO Board that has the power to provide certainty to its stockholders, as it can terminate the CCM transaction in accordance with its terms only after securing an alternative agreement with UWMC, following direct negotiations to maximize value for TWO stockholders. The TWO Board and its advisors have run a failed process, put management's interests ahead of stockholders' and wasted stockholder capital on advisor fees and delaying tactics... We call on the TWO Board yet again to do the right thing, engage with UWMC and work constructively towards a transaction or transactions that will get the most value for TWO stockholders."
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- Shareholder Voting Call: UWM (UWMC) publicly urged Two Harbors Investment (TWO) shareholders on Thursday to vote against a proposal, indicating strong concerns over corporate governance that could impact shareholder confidence in the company's future direction.
- Governance Risk Warning: This move reflects UWM's potential dissatisfaction with Two Harbors' investment decisions, which may lead to a decline in shareholder trust in the management, consequently affecting stock price performance.
- Market Reaction Anticipation: UWM's call could trigger renewed market interest in Two Harbors, prompting investors to reassess their investment strategies, thereby influencing the company's shareholder structure and market performance.
- Strategic Significance Analysis: UWM's action is not only a rejection of the current proposal but also a reevaluation of its position within the industry, potentially encouraging other companies to adopt more transparent and responsible governance practices.
- Shareholder Vote Delay: The TWO Board has once again postponed the special shareholder meeting despite clear opposition from shareholders against the CCM transaction, indicating a disregard for shareholder interests that could lead to diminished trust.
- Superior Proposal Ignored: UWMC's offer of $12.50 per share in cash or 2.3328 shares of UWMC stock significantly surpasses CCM's $12.00 offer, yet the Board has failed to engage in meaningful discussions with UWMC, potentially missing an opportunity to enhance shareholder value.
- Management Interests Prioritized: The Board has prioritized management's interests over those of shareholders during the transaction process, resulting in wasted shareholder capital on advisory fees and delay tactics, which may provoke shareholder dissatisfaction and protests.
- Call for Active Engagement: UWMC urges TWO shareholders to vote against the CCM transaction and demands that the Board engage in constructive dialogue to ensure shareholders can achieve maximum value, a strategy that, if implemented, could alter the current transaction landscape.
- Special Meeting Postponed: TWO has announced the postponement of its Special Meeting originally scheduled for May 19, 2026, to June 11, 2026, to continue engaging with stockholders and solicit additional proxies in favor of the CCM transaction, thereby ensuring sufficient shareholder support for the deal.
- Increased Transaction Price: Through ongoing negotiations with CCM, the TWO Board successfully raised the acquisition price from $10.80 to $12.00 per share, representing a 21% premium over the unaffected share price, which not only enhances shareholder cash returns but also increases the attractiveness of the transaction.
- Regulatory Approval Progress: The CCM transaction has received 41 of the 53 required state and agency regulatory approvals, and the early termination of the HSR waiting period on May 21, 2026, indicates that the deal is nearing completion, thus reducing uncertainty for shareholders.
- Importance of Shareholder Vote: The TWO Board strongly recommends that shareholders vote in favor of the CCM transaction, emphasizing that if the deal is not approved, there may not be a superior actionable offer, thereby safeguarding shareholder interests and promoting the company's future stability.

- Failed Shareholder Vote: TWO's inability to secure shareholder approval for the merger with CrossCountry Mortgage during the May 19 special meeting indicates a failure in the board's communication and value-maximizing efforts, leading to shareholder distrust regarding future transactions.
- Superior Proposal from UWMC: UWM Holdings has proposed to acquire TWO for $12.50 per share in cash or 2.3328 shares of UWMC stock, significantly better than CCM's offer, yet the board has not engaged with UWMC, risking shareholders missing out on higher returns.
- Independent Advisors' Recommendations: All three leading independent proxy advisors have recommended shareholders vote against the CCM transaction, reflecting dissatisfaction with the current transaction strategy of the TWO board, which could impact future shareholder support and market confidence.
- Importance of Voting: UWMC urges all TWO shareholders to vote against the CCM transaction at the rescheduled meeting to ensure good-faith engagement with UWMC, thereby creating greater value for shareholders, emphasizing the significance of every vote.
- Meeting Postponement: Two Harbors Investment has adjourned its special meeting to May 28 to allow more time for soliciting shareholder votes in favor of the sale to CrossCountry, indicating a cautious approach in advancing the transaction.
- Shareholder Voting Dynamics: The postponement responds to shareholder and proxy voting needs, particularly after ISS recommended shareholders vote against the deal last week, highlighting the company's efforts to secure broader support for a successful transaction.
- Rejection of Competing Proposal: Two Harbors unanimously rejected UWM Holdings' revised proposal last week, citing that it did not address the 'core deficiencies and material risks' of previous proposals, reflecting the company's strong emphasis on transaction safety.
- Slight Stock Increase: Following the announcement, Two Harbors' shares rose by 0.8%, indicating a cautiously optimistic market sentiment regarding the company's future transaction prospects, despite the challenges posed by shareholder voting.
- Superior Proposal Value: UWMC's offer of $12.50 per share or 2.3328 shares of UWMC stock for Two Harbors shareholders significantly exceeds the $12.00 offered in the CCM proposal, ensuring shareholder choice and potential upside in the merger.
- Strong Financing Support: UWMC has secured an unsecured bridge facility from Mizuho, eliminating financing conditions and market volatility impacts, which enhances financial stability and liquidity, thereby boosting shareholder confidence in its proposal.
- Regulatory Approval Advantage: With strong relationships with national regulators, UWMC anticipates completing the transaction within approximately two months of signing an agreement, demonstrating high efficiency and reliability in the merger process, further enhancing shareholder value expectations.
- Unanimous Proxy Advisor Recommendation: All three independent proxy advisors recommend shareholders vote against the CCM transaction, asserting that the TWO Board has failed to conduct a value-maximizing process, emphasizing that engagement with UWMC is the best path to achieve optimal shareholder interests.






