Summary: Two Harbors Investment's stock rose roughly 5% on Friday following a revised takeover proposal from UWM Holdings Corporation that offers Two Harbors shareholders $12.00 per share or a stock election. UWMC's amended bid is backed by an increased bridge financing commitment from Mizuho Bank and is positioned as a premium to CrossCountry Mortgage's competing cash offer.
Shares of Two Harbors Investment (NYSE:TWO) moved higher after UWM Holdings Corporation (NYSE:UWMC) sent an open letter to Two Harbors stockholders detailing an updated acquisition proposal. The revised offer sets a cash option of $12.00 per share and a stock alternative of 2.3328 shares of UWMC common stock. UWMC said the proposal contains no cap or proration on the cash amount available to stockholders.
UWMC framed the $12.00-per-share cash alternative as a $0.70 premium to CrossCountry Mortgage’s competing cash bid, which was announced as $11.30 per share on April 28. The company characterized the revised offer as representing more than 6% greater value than CrossCountry’s cash proposal. For context, Two Harbors shares closed at $11.57 on Thursday.
To support the amended bid, UWMC said it has secured a committed, unsecured $1.3 billion bridge facility from Mizuho Bank, Ltd., an increase from the $1.2 billion backing UWMC’s earlier April 20 proposal. UWMC emphasized that the facility contains no ratings trigger, no borrowing-base test, and no market contingency.
In its communication, UWMC criticized Two Harbors’ Board for not engaging with its April 20 proposal, which had offered $11.30 in cash or a stock election. UWMC noted that, instead of negotiating, Two Harbors’ Board amended its agreement with CrossCountry to match only the cash component while adding greater deal protections. Those protections included a near doubling of the termination fee - raised from $25.4 million to $50 million.
UWMC urged Two Harbors stockholders to contact the Board and press it to negotiate with UWMC, arguing the new proposal qualifies as a Superior Offer under the CrossCountry merger agreement. The company also said it will file a Form 8-K to disclose the precise terms of both offers.
Two Harbors stockholders are scheduled to vote on the CrossCountry transaction at a special meeting on May 19, 2026.
Context and next steps
With a formal filing forthcoming and a scheduled shareholder vote already on the calendar, the transaction fight is now moving toward additional disclosure and a decisive vote. Shareholders will have the opportunity to weigh the competing offers ahead of the May 19, 2026 special meeting.