Toronto-Dominion Bank, First Horizon Terminate Merger Agreement
May 04 2023 - 05:58AM
Dow Jones News
By Adriano Marchese
Toronto-Dominion Bank and Tennessee-based First Horizon have
decided to end their $13.4 billion merger agreement.
In a joint statement on Thursday, the companies said the
decision was made after TD Bank considered that obtaining the
regulatory prerequisites to push the merger through wasn't certain
nor guaranteed.
Shares of First Horizon dropped in premarket trading in New
York, falling nearly 40% from its closing price of $15.05 on
Wednesday.
Under the terms of the agreement, Canadian financial institution
TD Bank will make a $200 million cash payment to First Horizon on
top of the $25 million fee reimbursement that is owed to First
Horizon.
The companies said the First Horizon series G preferred stock
that TD Bank already owns will continue to reflect a version price
of $25 a share.
The deal was first announced at the end of February of last year
and has since been met with regulatory hurdles.
More recently, the collapse of three U.S. regional banks has put
investors on edge regarding the banking system, adding to scrutiny
of the deal, especially for TD Bank, a Canadian bank with a large
U.S. footprint.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
May 04, 2023 06:43 ET (10:43 GMT)
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