FHN - First Horizon drops amid report on TD Bank deal

2023-05-03 16:16:53 ET

First Horizon ( NYSE: FHN ) fell 7% amid a report about its planned sale to TD Bank ( NYSE: TD ).

TD ( TD ) Bank CEO Bharat Masrani had a meeting with some officials of the Office of the Comptroller of the Currency in early March that included TD bank outside counsel, according to a Capitol Forum report being circulated among traders. The subject of the meeting wasn't known.

The meeting came after TD Bank disclosed on March 1 that it didn't expect to receive regulator approval in time to complete its $13.4 billion acquisition by the May 27 deal termination deadline .

First Horizon's ( FHN ) stock drop on Wednesday came after a 7.6% fall on Tuesday as other regional bank stocks plunged after the FDIC's takeover of First Republic ( FRC ) and sale to JPMorgan. First Horizon ( FHN ) is currently trading at a 40% discount to its original $25 a share deal with TD.

The TD Bank ( TD ) CEO last month reiterated that the bank had  opened discussions with First Horizon on a deal extension. Masrani said that he had no further information to add on the First Horizon ( FHN ) deal and had no comment on a potential price adjustment.

Last month a KBW analyst said TD Bank ( TD ) was "very likely" to seek a price reduction for its planned $13.4 billion acquisition of First Horizon.

More on First Horizon/TD

• First Horizon: A Great Risk-To-Reward Prospect Amidst TD Bank Uncertainty
• First Horizon And Toronto-Dominion Bank: Will They Or Won't They?
• TD Bank CEO remains committed to completing First Horizon deal
• First Horizon shares seesaw amid report on TD Bank regulatory review

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