![]() If the deal doesn’t to go through, the effect on TD may be limited. “Setting aside the issue of obtaining regulatory approvals, recent events have prompted even more questions about TD’s ability and willingness to negotiate a lower acquisition price,” he said. National Bank of Canada analyst Gabriel Dechaine noted that the exposure of TD and the Bank of Montreal to uninsured depositors in the U.S. “I think both parties are motivated to find a better-negotiated price to make it happen because I think they both need each other, especially after the duration and extended duration this has been going on,” Chan said. For First Horizon, losing TD’s backing would mean its shares could fall even further. Chan added that TD has put in a lot of time and effort into the deal and is unlikely to walk away entirely. and strengthening its commercial and private wealth segments. Article contentĬhan said the deal could still be mutually beneficial, giving TD more scale in the U.S. ![]() This advertisement has not loaded yet, but your article continues below. It seems unlikely the deal will go ahead at the current price, but it’s too soon to tell whether the two banks will re-negotiate the terms. It comes on top of regulatory problems that emerged in February, when TD warned First Horizon that it might not be able to gain regulatory approval by the extended deadline of May 27.Īccording to its agreement with First Horizon, the merger can be terminated as long as both banks sign off on the decision, or if the merger isn’t completed within 12 months, with one three-month extension, which had already been exercised. Canaccord Genuity’s research pointed to a 26 per cent decline in general across U.S. regional bank caught up in the SVB turmoil. “Your scenario on the original (stock) price of US$25, I don’t think that is on the table right now just because of SVB and what transpired there,” said Canaccord Genuity analyst Scott Chan.įirst Horizon is not the only U.S. Shares of First Horizon closed at US$16.13 on Tuesday, 35.5 per cent below the US$25 per share offer TD launched in late February 2022 and 22 per cent below their March 10 level, when SVB was taken over by the U.S.
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