TWO Stock Tumbled Today – Two Harbors Sellout Comes At A Discount

• The agreement terminates TWO’s earlier merger with UWM Holdings, which offered $10.70 per share.
• CrossCountry will cover a $25.4 million termination fee tied to the UWM deal.
• The transaction is expected to close in the second half of 2026, following which, TWO will be delisted.

Shares of Two Harbors Investment Corp. (TWO) fell 2% on Friday after the company announced an acquisition agreement with CrossCountry Intermediate Holdco in an all-cash deal of $10.80 per share, representing a roughly 5% discount to its prior close.

The agreement terminates TWO’s earlier merger with UWM Holdings Corp. (UWMC), which offered $10.70 per share. CrossCountry will also cover a $25.4 million termination fee tied to that deal.

While retail sentiment for TWO on Stocktwits remained ‘neutral,’ message volumes were ‘extremely high.’

TWO To Be Delisted After Deal 

Under the new agreement, common shareholders will receive $10.80 per share in cash, while preferred stockholders will receive $25 per share upon closing.

The transaction is expected to close in the second half of 2026. Once completed, TWO will be delisted from the NYSE and become a privately held subsidiary of CrossCountry.

Two Harbors plans to continue its regular quarterly dividends until the merger closes but said it will not pay a partial dividend for the quarter in which the closing occurs.

UWM vs CrossCountry Offer

In December 2025, UWM Holdings signed an agreement to acquire Two Harbors Investment in an all-stock deal valued at about $1.3 billion. The deal was expected to generate roughly $150 million in annual cost and revenue synergies. It was  expected to significantly boost UWM’s public float to around 513 million shares.

However, in March, TWO received a new offer from CrossCountry, to acquire the company for $10.7 per share. The offer also included covering the $25 million termination fee. TWO has opened discussions and notified UWMC, triggering a match-right period during which UWMC can revise its terms. Meanwhile, a separate third party submitted a competing proposal, including a higher $10.75-per-share cash option. 

Year-to-date, the stock has gained 5%.

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