"CCM's proposal would be a fixed price, all-cash offer with no financing contingencies, meaning that CCM would assume the market risk of fluctuations of TWO's book value during the period prior to the closing of a transaction."
"UWM's first revised proposal added a cash backstop, guaranteeing TWO shareholders up to $10.71 per share, with UWM paying cash to cover any shortfall between that amount and the stock consideration based on UWM's recent average share price."
"Company A countered with a cash election option allowing up to 25% of Two Harbors' common shares to be cashed out at $11.09 per share, subject to proration, but lacked draft deal agreements and required significant due diligence."
"UWM submitted a second revised bid, raising its offer to provide a cash-equivalent value of $10.95 per share through a mix of stock and cash, removing the cap on total cash consideration."
UWM's initial proposal valued shares at $11.94, but CCM's $10.70 cash offer was more favorable. CCM's proposal included a $2 billion loan commitment. UWM revised its offer to guarantee $10.71 per share, capping cash at $212.8 million. A third bidder, Company A, offered $10.75 per share or a merger option. CCM increased its bid to $10.80, while Company A proposed a cash election at $11.09 per share. UWM countered with a cash-equivalent value of $10.95 per share, removing cash caps, but the TWO board remained undecided.
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