First Horizon ( NYSE: FHN ) ticked down 0.4% ahead of TD Bank's ( NYSE: TD ) earnings conference call where it's expected to get questions on the company's delayed $13.4 billion acquisition. The call is scheduled for 1:30pm EST.
First Horizon ( FHN ) dropped 10% on Wednesday after it disclosed that TD Bank ( TD ) said it didn't expect to get regulatory approval for its deal before a May 27 closing deadline. TD has initiated discussions with First Horizon regarding a potential further extension of the outside date, according to the 10-K filing.
"TD is fully committed to the transaction and we are in discussions with First Horizon about a potential further extension beyond May 27 th ," TD Bank CEO Bharat Masrani said in a statement on Thursday with the Q4 results. "This is a great transaction that offers scale and new capabilities for the U.S. bank."
U.S. lawmakers in June asked a banking regulator to block Toronto-Dominion's ( TD ) planned $13.4 billion 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.
On Wednesday a Janney analyst said he still expected the deal would close later this year, especially as "FHN does not have many alternatives better than TD," Janney analyst Christopher Marinac wrote.
TD Bank ( TD ) agreed to acquire First Horizon ( FHN ) in an all-cash transaction worth $13.4B or $25/share of First Horizon a year ago.
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First Horizon ticks lower ahead of TD Bank earnings conference call