UWMC criticizes Two Harbors board over rejection of $12 acquisition bid

UWM Holdings Corporation (NYSE: UWMC) criticized Two Harbors Investment Corp.'s (NYSE: TWO) board for rejecting its $12.00 per share acquisition proposal in favor of a $11.30 per share transaction with CrossCountry Mortgage, LLC.

UWMC stated that Two Harbors' board rejected its offer and reaffirmed support for the CrossCountry deal. The company argued that its $12.00 per share offer is superior to the $11.30 CrossCountry proposal and includes a stock option component.

UWMC said its financing is supported by a committed, unsecured $1.3 billion bridge facility from Mizuho Bank, Ltd. with no ratings trigger, borrowing-base test, or market contingency. The company stated that Mizuho agreed to remove a customary due diligence condition that Two Harbors' board had raised concerns about.

The company questioned the financing details of the CrossCountry transaction, stating that "scant details" have been provided even in recent announcements.

UWMC indicated it is "assessing its options to make sure TWO stockholders are able to obtain the value they deserve" and suggested that Two Harbors stockholders should carefully consider how to vote on the CrossCountry transaction.

UWM Holdings Corporation is the publicly traded parent of United Wholesale Mortgage, which the company describes as the nation's largest home mortgage lender operating exclusively through the wholesale channel. The company is headquartered in Pontiac, Michigan.

The information is based on a press release statement from UWMC.

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