Some TD shareholders urge bank to ditch or renegotiate First Horizon deal

TD Bank Group (TD.TO) should abandon or renegotiate its $13.4 billion acquisition of U.S. lender First Horizon (FHN.N) as the regional banking crisis has unearthed unknown risks, some small shareholders told Reuters.

Regional lenders in the U.S. face a crisis of confidence after the collapse of Silicon Valley Bank and Signature Bank last month.

First Horizon shares are trading almost 30% below TD’s offer price of $25 each, which points to the high risk to the deal closing. Since the acquisition was first announced, TD shares are down 11.1% vs 4.5% for the financials sector (.SPTTFS)

“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.

“Walk away and take the break fee and be able to get other deals cheaper now,” Schwartz said.

This report’s information was first seen on REUTERS; to read more, click this link.