FHN - First Horizon plunges amid bank selloff with TD Bank deal uncertainty

2023-03-13 13:26:27 ET

First Horizon ( NYSE: FHN ), which is in the middle of sale to TD Bank ( NYSE: TD ), crashed 22% amid a bank selloff sparked by the collapse of Silicon Valley Bank. TD fell 2.2%.

First Horizon ( FHN ) shares are trading ~$15.60, at levels well below when TD Bank ( TD ) announced its planned acquisition of the bank for $13.4 billion last February. FHN stock traded at $18.25 on Feb. 25, 2022, the day before the transaction was announced and the share are now the lowest since late December 2021.

The drop in First Horizon ( FHN ) follows after the shares fell 4% on Friday in the wake of the Silicon Valley Bank news and 11% on March 1 after TD Bank ( TD ) said it didn't expect to receive regulatory approval in time to complete its $13.4 billion acquisition by May 27. TD initiated discussions with First Horizon regarding a potential further extension of the outside date.

TD Bank ( TD ) CEO Bharat Masrani on a March 2 earnings call didn't deny that a price change for First Horizon ( FHN ) was possible as the deal drags on and passes the termination date.

"We'll we've just initiated the negotiations and, you know, once the negotiations are finalized, you know, we will be sure to give you further details," Masrani said on the call in an answer to analyst's question if a price change is a possibility.

TD Bank ( TD ) didn't immediately respond to Seeking Alpha email request for comment.

U.S. lawmakers in June asked a banking regulator to block Toronto-Dominion's ( TD ) planned acquisition. Sen. Elizabeth Warren (D-MA) sent a letter to the Office of the Comptroller of the Currency, asking the regulator to block the transaction over concerns about aggressive sales tactics.

TD Bank ( TD ) agreed to acquire First Horizon ( FHN ) in an all-cash transaction worth $13.4B or $25/share of First Horizon more than a year ago.

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