The Two Harbors acquisition saga will continue for at least one more week, after the company adjourned a shareholder meeting Tuesday. 

The servicer said it postponed its special meeting to provide additional time for Two Harbors to solicit additional proxies, and for shareholders to vote in favor of the CrossCountry Mortgage bid. The private retail-focused giant is battling wholesale leader United Wholesale Mortgage in an acquisition battle which has heated up in recent weeks. 

"The Two board of directors continues to unanimously recommend that stockholders vote 'for' the CCM transaction," the company said in Tuesday's press release. 

The next special meeting of stockholders is scheduled for May 28. Shareholders who already voted in favor of CrossCountry don't need to take further action. It's the second time Two Harbors has postponed a merger meeting, after a lack of participation in a March vote on the UWM deal. 

Two Harbors leadership has favored CrossCountry's offers since March, when the company determined the lender's unsolicited bid was more favorable than UWM's previously agreed-upon terms. The sides have since upped the ante several times, while criticizing their competitor's offers.

The servicer's board of directors last week rejected UWM's latest cash consideration of $12.50 per share. CrossCountry last week also adjusted its bid to suggest a total cash value of $12.45 to $12.68 per share.

A spokesperson for CrossCountry said the company had no comment, while representatives for UWM didn't respond to requests for comment. 

In a flash note Tuesday, analysts at Keefe, Bruyette & Woods said the lack of votes needed suggests CrossCountry will have to raise its bid. 

Lawsuit to block vote fizzles out

A federal judge on Monday meanwhile denied a stockholder's request for a temporary restraining order on the meeting, over alleged securities violations. 

Stockholder George Assad, who claims to have no preference between CrossCountry or UWM, sued Two Harbors last Wednesday and argued the company failed to disclose several key aspects of the deal to shareholders. Assad did not describe his position in Two Harbors, or whether he owns shares in UWM.

In a response to Assad late Friday, Two Harbors said the alleged omissions and misrepresentations were disclosed across the company's numerous proxy statement Securities and Exchange Commission filings. Attorneys for the servicer also noted that Assad is a serial litigator, having filed 35 similar securities claims in the past 13 years. 

In the filing, Two Harbors reiterated its preference for the CrossCountry terms, and summarized its concerns with UWM's proposal, including its unclear motivations for pursuing the servicer. 

"Just because [the] plaintiff disagrees about the inherent value of a term does not mean that the proxy statement is inaccurate," wrote attorneys for Two.