The Chicago Entrepreneur

: First Horizon stock drops 10% as its acquisition by TD hits a regulatory snag

First Horizon Corp. FHN stock dropped 10% in midday trading on Wednesday after the banking and mortgage provider said in a filing that Toronto-Dominion Bank TD does not expect to win regulatory approval for its pending $13 billion acquisition of the company by the extended date of May 27, past the original target date of March 31. First Horizon and TD do not know when the new closing date will be. TD has initiated talks with First Horizon on a potential further extension of the outside date. “There can be no assurance that an extension will ultimately be agreed or that TD will satisfy all regulatory requirements so that the regulatory approvals required to complete the pending TD merger will be received,” First Horizon Corp. said in a filing. Jefferies analyst Casey Haire said the standalone valuation of First Horizon is about $15 to $17 a share. At last check, First Horizon stock is trading at $22.29 a share. The merger was initially announced in February, 2022.

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