![]() Not only has the banking landscape changed dramatically since February, but the regulatory issues that plagued the First Horizon tie-up in the first place haven’t gone away. Unfortunately, that’s not the case today. The two companies might have been all smiles in February. So the clock is ticking with 10 weeks until the May deadline. In February, the two parties extended their walk date from Feb. Henderson specializes in merger arbitrage and special situations at JonesTrading. “With a walk date in May looming and bank stocks imploding, the question is will TD walk away or ask for a massive cut?” BNN Bloomberg reported Cabot Henderson's comments. Who knows where First Horizon’s deposit balance will end up after everything is said? Time, however, TD does not have. bank and give it tremendous bragging rights with the rest of the Big Five. Adding this business to its balance sheet would make TD the sixth-largest U.S. That came after First Horizon’s 2021 fiscal year (December year-end) showed that it had $75 billion in deposits and a $55 billion loan portfolio. TD first announced the deal in February 2022. It quoted CIBC analyst Paul Holden for that little tidbit of information. Given all the uncertainty in the North American banking industry, there are real negatives to following through with the deal, even at a lower price.īNN Bloomberg reported on March 13 that First Horizon is hemorrhaging deposits - down 10% over the past two quarters - losing them at a rate worse than the industry average. So, the question is whether TD should scrap the deal altogether or renegotiate a much lower price on its acquisition. That would not go over too well with shareholders. If TD had to close the deal tomorrow, it would pay 59% more than the current share price for the Memphis, Tennessee-based bank.
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