Td first horizon12/24/2023 ![]() ![]() The transaction awaits approval from the Federal Reserve and the Office of the Comptroller of the Currency in the U.S. acquisition strategy, which was once seen as the best way to beat sluggish growth at home.Ĭanada’s top six banks control about 90 per cent of banking operations in the country. While the deal isn’t subject to a shareholder vote, the opposition underscores how some investors are turning cautious on the Canadian bank’s U.S. TD offered a 37 per cent premium to buy First Horizon more than a year ago in a deal that would make TD the sixth-largest U.S. “It will all be forgotten, but if there are more problems at First Horizon, that’s so much worse.” “As a shareholder, I’m fine with these writeoffs,” said Schwartz. That compares with TD’s last reported quarterly profits of $1.6 billion.Ī First Horizon spokesperson did not respond to multiple requests for comment. If TD does not proceed, First Horizon could sue for damages, and lawyers estimated it would cost hundreds of millions. 2 lender, is obligated to go through with the transaction but would have to pay US$25 million to First Horizon if regulators don’t approve it, according to the contract. ![]() “Walk away and take the break fee and be able to get other deals cheaper now,” Schwartz said. “I don’t think it’s something TD should go ahead with in this environment,” said Barry Schwartz, portfolio manager at Baskin Financial Services, a shareholder in TD. Since the acquisition was first announced, TD shares are down 11.1 per cent versus 4.5 per cent for the financials sector. First Horizon shares are trading almost 30 per cent below TD’s offer price of US$25 each, which points to the high risk to the deal closing. ![]()
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