JHVEPhoto/iStock Editorial via Getty Images
TD Bank (NYSE:TD) CEO Bharat Masrani reiterated his commitment to completing the acquisition of First Horizon (NYSE:FHN) at a meeting with Bank of America on Wednesday.
“Mgmt. remains committed to completing the FHN deal where TD/FHN are currently negotiating an extension to the current deal deadline,” BofA analyst Ebrahim H. Poonawala wrote in a note on Thursday. “Mgmt. emphasized the synergies expected from the acquisition, namely fortifying the U.S. commercial banking (mainly middle market) capabilities, while adding over one million new customers.”
The location of the First Horizon (FHN) banks in the U.S. Southeast is also attractive to TD Bank (TD) as they continues to grow at a faster pace than the rest of the U.S,, TD management explained, according to BofA, which has a buy rating and C$99 price target on TD.
Masrani’s comments at the TD luncheon sent First Horizon (FHN) up as much as 4.6% on Wednesday, though they ended up rising 1.1%. Traders told Seeking Alpha that Masrani didn’t address a potential price adjustment for the Frist Horizon (FHN) deal or regulatory issues that have delayed the close of the deal.
First Horizon shares dropped 11% on March 1 after TD Bank (TD) said it didn’t expect to receive regulator approval in time to complete its $13.4 billion acquisition by the May 27 deal termination deadline.
Wells Fargo upgraded First Horizon (FHN) late last month to overweight and said it still expects TD Bank (TD) to eventually complete its proposed acquisition of FHN at the original agreed-upon price of $25 per share.
Source: seekingalpha.com
