UWM Urges Two Harbors Shareholders to Reject CrossCountry Merger
Event summary
- UWM Holdings Corporation (UWMC) urged Two Harbors Investment Corp. (TWO) shareholders to vote against TWO's proposed merger with CrossCountry Mortgage (CCM) ahead of a special meeting on June 23, 2026.
- UWMC's proposal offers higher value, including the option for $12.50 per share in cash or stock consideration, compared to CCM's $12.00 per share agreement.
- Independent proxy advisors ISS, Glass Lewis, and Egan-Jones have all recommended voting against the CCM transaction due to concerns over TWO's process and UWMC's superior offer.
- UWMC criticized TWO's board for repeated adjournments and lack of good-faith engagement in negotiations.
The big picture
UWM's push to acquire Two Harbors reflects broader industry consolidation in mortgage lending, with UWMC positioning itself as a superior alternative to CrossCountry. The dispute highlights tensions between shareholder value maximization and board discretion, particularly in the context of repeated adjournments and restricted negotiations. The outcome will signal how effectively activist shareholders can influence M&A outcomes in the financial services sector.
What we're watching
- Governance Dynamics
- Whether TWO's board will engage in good-faith negotiations with UWMC following shareholder pressure to reject the CCM merger.
- Deal Execution
- The pace at which UWMC can finalize an agreement with TWO if the CCM transaction is rejected, given previous delays and restricted engagement attempts.
- Shareholder Influence
- How proxy advisors' recommendations against the CCM deal will impact voting outcomes and future governance decisions at TWO.