Two Harbors postpones vote as CrossCountry touts final offer

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Three mortgage giants are in limbo yet again as Two Harbors adjourned another shareholder meeting Thursday. 

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Two Harbors in a press release said it wants to provide additional time to solicit additional proxies in favor of an acquisition bid by CrossCountry Mortgage. The company adjourned a shareholder meeting last week as competing interest from United Wholesale Mortgage looms. 

The next meeting is scheduled for June 11. 

The Two board of directors said they're still recommending shareholders vote for the CCM offer. Company leaders have favored the Cleveland-based private retail lender's terms since March, when they pushed aside UWM's standing bid

CrossCountry on Thursday touted its $12.00 per share offer as its "best and final offer," and hinted that it could mull other moves. The CCM bid includes a pro-rated stub dividend that the company said could previously raise its terms to $12.45 to $12.68 per share. 

"This represents the highest premium paid for a mortgage-REIT," the company said in its press release Thursday. "CCM will not pursue a deal at all costs; there are other strategic alternatives available."

While CrossCountry sounded steadfast in its offer, investor analysts with Keefe, Bruyette & Woods Thursday suggested the lack of votes means the lender will need to increase its bid.

UWM meanwhile has touted its "superior" proposal of $12.50 per share in cash, or 2.3328 shares of stock in its parent company, UWMC. The wholesale leader has also publicly accused Two Harbors leadership of favoring the CrossCountry deal because of its own purported outsize cash payments to management.

In a lengthy statement Thursday afternoon, UWM once again slammed Two Harbors' board and its advisors over the "failed process," and claimed Two Harbors Chairman Stephen Kasnet adjourned the meeting despite a quorum and shareholders voting against an adjournment.

"It's high time the TWO Board listens to their stockholders and engages in good faith negotiations with UWMC – something which the Two board, contrary to its assertions, has steadfastly refused to do for months," the statement read.

UWM's stock was up six cents from market open around noon Thursday, at $3.14 per share, although the company's stock has dipped slightly in the past few weeks. Two Harbors stock was trading at $12.36 per share at the same time, falling from $12.49 at market open.