First Horizon shares currently trade at a 26% discount to the original offer. Holden suggests shareholders would be disappointed if $25 remains on the table. A longer closing period and a lower price would help address capital concerns for TD.” “Extending the offer at the original price of $25 would be disappointing for TD shareholders. Yet the analyst was candid about any discount. However, as previously discussed, there are multiple reasons to justify a lower offer price, and we think something around $22.50 per FHN share is a reasonable expectation,” Yahoo Finance reported Holden’s comments. “We expect TD and FHN will agree to extend the offer and believe that an extension of six months or longer is possible given regulatory uncertainty. In a note to clients, Holden discussed his thoughts on an extension and the ultimate price TD would pay for First Horizon. On April 18, CIBC Capital Markets analyst Paul Holden upgraded TD stock to 'outperform' from 'neutral'. On the first issue, it seems unlikely that the two parties wouldn’t agree to a second extension because TD is unlikely to terminate the agreement - under certain circumstances, First Horizon would receive a $435.5 million termination fee - so they would likely end up in a lengthy court battle over who owes whom from a failed merger. 27, and a possibly lower price paid per First Horizon share than the original $25 offered. The two parties are in discussions for a second extension to the deadline, to Aug.
The closing deadline was extended by three months to May 27. It's been 14 months since TD first announced that it was acquiring First Horizon. Uncertainty surrounding Toronto-Dominion Bank’s potential 13.4 billion acquisition of Tennessee-based First Horizon continues to increase, though the deal for now is not in immediate. TD’s doubling down on its commitment to complete the First Horizon transaction has significant implications for the future of Canada’s second-biggest lender and America’s eighth-largest bank. Memphis’ largest homegrown bank announced in 2019 a branding change to combine First Tennessee Bank, Capital Bank, FTB Advisors and FTN Financial under its current name to simplify customer and branding experience. While there are some attractive reasons for TD to acquire First Horizon, many investors are betting that the company has backed itself into a corner it can’t escape. First Horizon has about 5,500 employees nationwide, according to its website.
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