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UWM Walked Away From the Two Harbors Bidding War. That Might Be the Best News for Shareholders.

The Motley Fool·
UWM Walked Away From the Two Harbors Bidding War. That Might Be the Best News for Shareholders.

United Wholesale Mortgage (UWM) lost a bidding war to acquire Two Harbors Investment Corp to privately-held CrossCountry Mortgage. While UWM's final offer of $12.50 per share was higher than CrossCountry's winning $12 per share bid, analysts view UWM's decision to walk away as prudent. Given UWM's unsustainably high 20% dividend yield and earnings that don't cover dividend payments, avoiding the costs and complexity of a contentious merger protects shareholder value.

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