Investigation Launched on $9.4 Billion Merger Deal

News Summary

A significant investigation has been initiated regarding the proposed merger between Mr. Cooper Group Inc. and Rocket Companies valued at $9.4 billion. Led by former Louisiana Attorney General Charles C. Foti, Jr., the legal firm Kahn Swick & Foti, LLC is scrutinizing the deal’s terms, which offer a 35% premium to shareholders. The complex transaction requires shareholder approval and is poised to reshape the ownership structure, with Rocket Companies projected to control 75% of the merged business. The potential implications for shareholders and the housing market are under careful examination.

Former Attorney General Probes Huge $9.4 Billion Deal Between Mr. Cooper and Rocket Companies

In the lively city of New Orleans, a major investigation is brewing around the proposed sale of Mr. Cooper Group Inc. to Rocket Companies. Kahn Swick & Foti, LLC, a law firm spearheaded by former Louisiana Attorney General Charles C. Foti, Jr., is carefully examining the details of this tantalizing $9.4 billion transaction.

What’s on the Table?

So, what’s the scoop? The proposed deal suggests that for every share of Mr. Cooper that investors hold, they will receive 11.0 shares of Rocket in return. When you do the math, that brings the total value of each Mr. Cooper share to about $143.33, based on the recent stock market performances.

This all-stock deal offers a 35% premium above Mr. Cooper’s stock average price over the last month leading to March 28, 2025. Sounds like a sweet deal, right? But that’s not the only detail raising eyebrows—Kahn Swick & Foti want to dig deeper into whether the whole proposition genuinely represents the real value of Mr. Cooper, or if shareholders might be getting a raw deal.

Who Will Own What?

Once this transaction is finalized, Rocket shareholders are poised to hold about 75% of the unified company, while Mr. Cooper’s shareholders would hold the remaining 25%—a significant shift in the balance of power. Moreover, a dividend of $2.00 per share of Mr. Cooper stock is set to be declared and paid upon completing the transaction.

What’s the Timeline?

The boards of directors from both companies have given the green light to this union. However, before it can proceed, it will need approval from Mr. Cooper shareholders and will also be subject to regular regulatory checks. It’s estimated that this transaction could wrap up sometime in the fourth quarter of 2025.

A New Leadership Team

Once the merger wraps up, a new management team will take charge. This team is expected to be made up of 11 members, with the majority—nine—coming from Rocket’s current board. Varun Krishna will continue his role as the CEO of the combined entity and Jay Bray, presently the Chairman and CEO of Mr. Cooper, will jump into the role of President and CEO of Rocket Mortgage.

The Big Picture

This merger isn’t just about numbers; it represents a strategic move by Rocket Companies, who have also been on an acquisition spree—earlier announcing a jaw-dropping purchase of Redfin for $1.75 billion. Together, the merged company could possibly cater to nearly 10 million clients and boast a servicing portfolio of $2.1 trillion, managing about 1 in 6 mortgages in the U.S. That’s a hefty footprint in the housing market!

Things to Consider

However, before anyone gets too excited, there are some notable risks around wrapping up this deal. Market conditions can shift unexpectedly, and regulatory obstacles can spring up at the last minute. For those shareholders feeling unsure about the value they’re receiving from this transaction, Kahn Swick & Foti are offering legal guidance. Interested parties can reach out to their Managing Partner, Lewis S. Kahn, at no cost or obligation to explore their options.

Your Next Steps

If you’re curious about the implications of this massive merger or just want to know more about what’s cooking, KSF has resources available on their website, designed to guide shareholders through the complex legal waters. This is a developing story with plenty of angles, and it promises to keep both sets of shareholders on their toes!

Deeper Dive: News & Info About This Topic

• PR Newswire
• Wikipedia: Mr. Cooper Group
• AP News
• Google Search: Mr. Cooper Rocket merger
• Business Wire
• Encyclopedia Britannica: Rocket Companies
• Wall Street Journal
• Google Scholar: Mr. Cooper merger Rocket Companies
• Fintech Futures
• Google News: Mr. Cooper Rocket merger