TD:CC - First Horizon shares seesaw amid report on TD Bank regulatory review

2023-03-29 14:18:04 ET

First Horizon ( NYSE: FHN ) rose 1.2% after earlier dropping as much as 2.8% amid a report that a Dept. of Justice review of the TD Bank ( NYSE: TD ) appears to be holding up the transaction.

It's not clear what's the focus of the DOJ probe is on or how long it's been going on for, according to traders, who cited a Capitol Forum report being circulated.

The report comes after First Horizon ( FHN ) shares plunged 20% on March 13 amid a bank selloff sparked by the collapse of Silicon Valley Bank and the shares have seesawed in recent weeks amid the regional banking crisis. The plunge in the regional banks stocks caused some investors concern that the $25 a share price for FHN would have to be renegotiated lower.

The shares first dropped 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 the May 27 deal termination deadline. TD initiated discussions with First Horizon regarding a potential further extension of the outside date.

First Horizon ( FHN ) shares 6.2% on Friday after Wells Fargo upgraded the bank to overweight and said it still expects TD Bank ( TD ) to eventually complete its proposed acquisition of FHN at the original agreed-upon price of $25 per share.

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