Why First Horizon shares plunge over 50% premarket -…

Why First Horizon shares plunge over 50% premarket -…

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First Horizon Corp. FHN Stocks plummeted in premarket trading on Thursday.

First Horizon and TD Bank Group TD announced that they have agreed to mutually terminate their previously announced $13.4 billion merger agreement. The companies said TD Bank has no regulatory approval timeline and there is uncertainty about the approval.

TD Bank would pay First Horizon $200 million in cash as a termination fee. The Horizon Series G preferred stock purchased by TD will reflect the conversion price of $25 per share, the press release said.

First Horizon CEO Bryan Jordan said: “Our strong capital position, disciplined credit quality, cost control measures and a well diversified and stable funding mix have enabled our company to weather the challenging dynamics of the banking industry and remain focused on executing our client-centric growth plan.”

The companies made it clear that the termination had nothing to do with the situation at First Horizon ongoing crisis at regional banks could increase investor nervousness.

In premarket trading, First Horizon fell 51.63% to $7.28 Benzinga Pro data.

See also: Best regional bank stocks



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