UWM Holdings Corporation's stock price plummeted 5.03% during early trading on Monday, following news of the company's increased acquisition proposal for Two Harbors.
The mortgage lender raised its bid to acquire Two Harbors to $12.50 per share for stockholders that elect to receive cash, up from a previous $12 per share offer. UWM Holdings is offering $12.50 in cash or 2.3328 shares of UWMC stock per Two Harbors share and has filed a preliminary proxy to solicit votes from Two Harbors stockholders against a proposed merger with CrossCountry Mortgage.
Two Harbors has previously rebuffed UWM's competing interest, citing financing, closing, operational and credibility risks with UWM's bids. In comparison with CrossCountry's $12 per share deal, UWM claims its bid reduces compensation to Two Harbors management and instead pays higher value to stockholders.