Why Is First Horizon (FHN) Stock Down 43% Today?

  • First Horizon (FHN) stock is dropping on a failed merger with TD Bank (TD).
  • Approval from regulators was behind the termination of the merger agreement.
  • This has TD Bank agreeing to pay First Horizon $200 million.
FHN Stock - Why Is First Horizon (FHN) Stock Down 43% Today?

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First Horizon (NYSE:FHN) stock is taking a beating on Thursday after the company failed to complete its merger with TD Bank (NYSE:TD).

First Horizon and TD Bank have both agreed to end the merger deal that was originally announced back in February 2022. The reason given is TD Bank’s trouble with obtaining approval from regulators. The company doesn’t know when this would happen, which resulted in the mutual end of the merger plan.

As part of the merger agreement, breaking off the deal has TD Bank agreeing to pay $200 million to First Horizon. That’s in addition to the $25 million fee reimbursement it also has to make as part of the agreement.

Bryan Jordan, president, chairman, and CEO of First Horizon, said the following in a news release:

“While today’s announcement is unfortunate and unexpected, First Horizon will continue on its growth path operating from a position of strength and stability. Our strong capital position, disciplined credit quality, expense control measures, and well-diversified and stable funding mix have enabled our business to navigate challenging banking industry dynamics and remain focused on executing our client-centric growth plan.”

FHN Stock Reacts the News

With news of the merger being called off, shares of FHN stock are seeing heavy trading on Thursday. This has more than 19 million shares of the stock changing hands as of this writing. For the record, the company’s daily average trading volume is about 8.5 million shares.

FHN stock is down 42.5% as of Thursday morning.

Investors can find even more of the latest stock market news below!

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2023/05/why-is-first-horizon-fhn-stock-down-43-today/.

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