TD bank may reprice major acquisition of First Horizon, analyst says
Summary
Toronto-Dominion Bank remains committed to closing its acquisition of First Horizon Corp. more than a year after the blockbuster deal was announced, but its unlikely the original $13.4 billion price will survive the process. Thats the conclusion of Jefferies analyst Casey Haire, who said in a Friday research note that the original acquisition price of $25 a share remains on the table for renegotiation. The subject came up during TDs (TD.T) quarterly conference call with analysts on Thursday, which followed a filing from First Horizon (FHN) earlier this week that the transaction is not expected to close by the extended date of May 27. "TD did not deny the possibility of a potential price change when asked, citing that negotiations about the extension with First Horizon have just begun," Haire said. "TD seems unlikely to walk given the recent announcement of a $50 billion community benefits plan targeted toward the banks new and existing footprints upon closing of the transaction.