![]() ![]() "I am against the acquisition and would like to see the bank cancel it," Tim Burt, founder of Cardinal Capital Management, who personally owns 3,000 shares, told Reuters.Įven the shareholders who support TD going ahead with the deal say it should not pay the original price proposed. and the Office of the Superintendent of Financial Institutions in Canada.Īs previously disclosed, TD is in discussions with First Horizon to extend the May 27 closing date, a TD spokesperson said on Monday. The transaction awaits approval from the Federal Reserve and the Office of the Comptroller of the Currency in the U.S. ![]() acquisition strategy, which was once seen as the best way to beat sluggish growth at home.Ĭanada's top six banks control about 90% of banking operations in the country. While the deal isn't subject to a shareholder vote, the opposition underscores how some investors are turning cautious on the Canadian bank's U.S. TD offered a 37% premium to buy First Horizon more than a year ago in a deal that would make TD the sixth-largest U.S. "It will all be forgotten, but if there are more problems at First Horizon, that's so much worse." ![]() "As a shareholder, I'm fine with these write-offs," said Schwartz. That compares with TD's last reported quarterly profits of C$1.6 billion ($1.19 billion).Ī First Horizon spokesperson did not respond to multiple requests for comment. If TD does not proceed, First Horizon could sue for damages, and lawyers estimated it would cost hundreds of millions. 2 lender, is obligated to go through with the transaction but would have to pay $25 million to First Horizon if regulators don't approve it, according to the contract. "Walk away and take the break fee and be able to get other deals cheaper now," Schwartz said. "I don't think it's something TD should go ahead with in this environment," said Barry Schwartz, portfolio manager at Baskin Financial Services, a shareholder in TD. Since the acquisition was first announced, TD shares are down 11.1% vs 4.5% for the financials sector (.SPTTFS) face a crisis of confidence after the collapse of Silicon Valley Bank and Signature Bank last month.įirst Horizon shares are trading almost 30% below TD's offer price of $25 each, which points to the high risk to the deal closing. lender First Horizon (FHN.N) as the regional banking crisis has unearthed unknown risks, some small shareholders told Reuters. TORONTO, April 4 (Reuters) - TD Bank Group (TD.TO) should abandon or renegotiate its $13.4 billion acquisition of U.S. ![]()
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