Mar. 19 at 7:46 PM
Two Harbors Investment Corp shares rose after the company disclosed an unsolicited all-cash acquisition offer valuing it at
$10.70 per share. The proposal also covers the
$25.4 million breakup fee tied to its existing merger agreement with UWM Holdings Corporation.
An independent board committee said the offer could potentially qualify as a “superior proposal,” though no final determination has been made yet. Two Harbors will continue evaluating the bid while maintaining its current recommendation to proceed with the UWMC stock-based deal, with a shareholder vote still scheduled.
The unsolicited bid stands out as more attractive due to its all-cash structure compared to UWMC’s all-stock offer, which implies a lower valuation. Analysts suggest the cash offer may better reflect the company’s underlying value despite recent book value pressure.
$TWO $UWMC