First Horizon shares slid 12% to $21.69 at 11:17 a.m. in New York. Toronto-Dominion declined 0.7% to C$90.18 in Toronto.
“Though we consider that that is merely a required regulatory disclosure, we can not deny that it brings extra uncertainty when it comes to the timing and supreme completion of the acquisition of First Horizon by TD,” Barclays Plc analyst John Aiken stated in a observe to shoppers. “The chance of the deal not being accomplished has elevated primarily based on this disclosure.”
Toronto-Dominion stated in an emailed assertion that it “stays dedicated to the transaction,” however can’t remark additional till it reviews fiscal first-quarter outcomes Thursday.
Toronto-Dominion is engaged on a serious US growth centered on the First Horizon deal, which might give it greater than 400 new branches within the nation and add greater than 1.1 million particular person and enterprise prospects throughout 12 states, primarily within the Southeast. The financial institution is also bulking up its presence in US capital markets with the $1.3 billion acquisition of Cowen Inc., a deal that has obtained regulatory approvals and was on observe to shut Wednesday.
The First Horizon deal has confronted extra opposition in Washington, with Senator Elizabeth Warren calling for regulators to block the deal.