The improved terms reduce the risk of the deal collapsing from a competing bid, but the stock still trades near the offer price, limiting upside. Watch for stockholder vote on May 19 and any regulatory updates. The increased termination fee makes it costlier for Two Harbors to accept a superior proposal, but also signals commitment from CrossCountry.
Price Chart
Executive Summary
Two Harbors Investment Corp. amends its merger agreement with CrossCountry Mortgage, increasing cash consideration from $10.80 to $11.30 per share and raising the termination fee from $25.4M to $50.0M, following an unsolicited competing proposal from UWM Holdings. The amendment adds a closing condition requiring business permit consents, while the board reaffirms its recommendation. The transaction is expected to close in Q3 2026, subject to stockholder approval and regulatory clearances.
Key Financial Metrics
Key Facts
- Per-share cash consideration increased from $10.80 to $11.30
- Termination fee payable by Two Harbors increased from $25.4M to $50.0M
- New closing condition requires consent for business permits related to mortgage origination and servicing
- Special stockholder meeting scheduled for May 19, 2026
- Transaction expected to close in Q3 2026
Financial Impact
Increase in per-share consideration by $0.50 (4.6% from original $10.80) and termination fee increase of $24.6M
Risk Factors
- Stockholder approval may be withheld if a higher bid emerges
- Regulatory approvals, especially business permit consents, could delay or prevent closing
- Increased termination fee may deter other bidders but also raises Two Harbors' liability if the deal fails
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-050822 |
| Document: tm2612985d3_ex99-1.htm | 0001104659-26-050822 |
| Document: tm2612985d3_ex2-1.htm | 0001104659-26-050822 |
| Document: 0001104659-26-050822-index-headers.html | 0001104659-26-050822 |
| Document: 0001104659-26-050822-index.html | 0001104659-26-050822 |
| Document: 0001104659-26-050822.txt | 0001104659-26-050822 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 8, 2026 16w ago | DEFA14A | $25.34 $26.09 | ▲ +2.96% | ▼ −0.09% | $26.33 (+3.91%) |
Jun 8, 2026 16w ago | DEFA14A | $25.34 $26.09 | ▲ +2.96% | ▼ −0.09% | $26.33 (+3.91%) |
Jun 8, 2026 16w ago | 8-K | $25.34 $26.09 | ▲ +2.96% | ▼ −0.09% | $26.33 (+3.91%) |
Jun 3, 2026 17w ago | DEFA14A | $25.39 $26.06 | ▲ +2.64% | ▲ +0.14% | $26.33 (+3.70%) |
May 19, 2026 19w ago | DEFA14A | $25.24 $25.38 | ▲ +0.55% | ▼ −4.45% | $26.33 (+4.32%) |
May 19, 2026 19w ago | 8-K | $25.24 $25.38 | ▲ +0.55% | ▼ −4.45% | $26.33 (+4.32%) |
May 15, 2026 20w ago | DEFA14A | $25.30 $25.28 | ▲ +0.08% | ▲ +4.59% | $26.33 (−4.07%) |
May 15, 2026 20w ago | 8-K | $25.30 $25.28 | ▲ +0.08% | ▲ +4.59% | $26.33 (−4.07%) |
May 14, 2026 20w ago | 144 | $25.30 $25.28 | ▼ −0.08% | ▼ −4.59% | $26.33 (+4.07%) |
May 14, 2026 20w ago | DEFA14A | $25.26 $25.35 | ▲ +0.36% | ▼ −3.23% | $26.33 (+4.24%) |
US Market Status
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