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bank 💰 (New York Stock Exchange: TD(CEO Bharat Masrani reiterated his commitment to completing the acquisition of First Horizon)New York Stock Exchange: FHN) in a meeting with Bank of America on Wednesday.
Mgmt. remains committed to completing the FHN transaction as TD/FHN is currently negotiating an extension to the deadline for the current deal,” Bank of America analyst Ibrahim H. Poonawalla wrote in a note Thursday. He emphasized the expected synergies from the acquisition, particularly the strengthening of US commercial banking capabilities (mainly mid-market), with the addition of more than 1 million new customers.”
First Horizon Banks (FHN)’s location in the southeastern US is also attractive to TD Bank (TD) as it continues to grow faster than the rest of the US, explained TD Management, according to BofA, which has a Buy rating and a C$99 price target on the TD.
Masrani’s comments at the TD luncheon sent First Horizon (FHN) up 4.6% on Wednesday, though it was up 1.1%. Traders told Seeking Alpha that Masrani did not address a potential price adjustment to the Frist Horizon (FHN) deal or regulatory issues that delayed closing the deal.
Shares of First Horizon fell 11% on March 1 after TD Bank (TD) said it did not expect to secure regulatory approval in time to complete the $13.4 billion acquisition by the May 27 closing deadline.
Wells Fargo upgraded First Horizon (FHN) late last month to overweight and said it still expects TD Bank (TD) to complete the proposed acquisition of FHN at the original agreed upon price of $25 per share.