Traders should monitor stockholder vote results on May 19 and any potential competing bids from UWM. The stock is expected to trade near the $11.30 takeout price minus deal risk premium. Approval is likely given the improved terms.
Price Chart
Executive Summary
Two Harbors Investment Corp. (TWO) amended its merger agreement with CrossCountry Mortgage (CCM), increasing the cash consideration from $10.80 to $11.30 per share following an unsolicited competing proposal from UWM Holdings. The termination fee was also raised from $25.4 million to $50.0 million. The board unanimously recommends stockholders vote FOR the merger at the special meeting on May 19, 2026.
Key Facts
- Per-share cash consideration increased from $10.80 to $11.30, a ~4.6% increase.
- Termination fee payable by TWO to CCM increased from $25.4 million to $50.0 million.
- Added closing condition requiring business permit consents for mortgage origination and servicing businesses.
- Special meeting of stockholders scheduled for May 19, 2026.
- Board reaffirms recommendation to vote FOR the merger.
- Transaction expected to close in Q3 2026.
Financial Impact
Increase in per-share consideration from $10.80 to $11.30, representing approximately $0.50 per share additional value for common stockholders.
Risk Factors
- Stockholder approval still required; though board recommends FOR, not guaranteed.
- Regulatory approvals and business permit consents may delay or prevent closing.
- UWM or another bidder could still emerge with a superior proposal.
- Termination fee increase raises deal break costs but could deter competing bids.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| DEFA14A Filing (Primary) | 0001104659-26-050831 |
| Document: tm2612985d4_ex99-1.htm | 0001104659-26-050831 |
| Document: tm2612985d4_ex2-1.htm | 0001104659-26-050831 |
| Document: 0001104659-26-050831-index-headers.html | 0001104659-26-050831 |
| Document: 0001104659-26-050831-index.html | 0001104659-26-050831 |
| Document: 0001104659-26-050831.txt | 0001104659-26-050831 |
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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