Two Harbors Investment Corp. (TWO) announced that it has received an unsolicited proposal from CrossCountry Mortgage for $10.70 per share, valuing the company at roughly $1.13 billion in equity based on its current market capitalization. A separate, unnamed third party has submitted a higher offer of $10.75 per share, creating a competitive bidding environment for the company’s outstanding shares.
The CrossCountry offer is priced at a level that is essentially at or slightly above the market price of $10.71 per share, and it includes a termination fee that makes it a “Company Superior Proposal” under the existing merger agreement with UWM Holdings Corporation (UWMC). The higher third‑party bid further intensifies the competition for Two Harbors’ shares.
In response to the new offers, Two Harbors’ board postponed the special meeting that would vote on the proposals to April 7, 2026, giving shareholders additional time to review the competing bids and assess their options.
The original merger agreement with UWMC, announced in December 2025, was an all‑stock transaction with a fixed exchange ratio of 2.3328x. Based on UWMC’s closing price on December 16, 2025, the implied value of the deal was $11.94 per share. CrossCountry’s proposal triggers the match‑right period under the UWMC agreement, giving UWMC until March 25, 2026 to revise its offer to match or exceed the competing bids.
Two Harbors’ recent financial performance provides context for the offers. In Q4 2025 the company generated $221 million in revenue, a 0.9% increase from Q4 2024, and reported a net income of $298.2 million in 2024, reversing a loss in 2023. The book value per share stood at $14.47 as of December 2024, indicating that the current offers are below the book value but close to the market price, which may represent a modest premium for shareholders.
The bidding activity reflects broader market dynamics for mortgage‑investment trusts. Two Harbors’ mortgage servicing rights (MSR) portfolio has attracted interest from firms pursuing consolidation in the mortgage space. CrossCountry Mortgage’s acquisition history—including the purchase of AmCap Home Loans in 2024 and Summit Funding in 2026—demonstrates a strategy of expanding its mortgage asset base, suggesting that the company sees similar value in Two Harbors’ portfolio.
Investors have reacted to the intensifying bidding war, with the emergence of a higher $10.75 offer raising the stakes for shareholders and potentially influencing the outcome of the UWMC match‑right period. Shareholders are weighing whether the competing offers provide a premium over the original UWMC deal and the company’s book value, and the board’s decision to postpone the vote reflects the need for a thorough evaluation of the proposals.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.