off-the-wire

UPDATE 1-TD sees value in First Horizon deal as shareholders grill CEO

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds shareholder questions, CEO quotes) By Maiya Keidan TORONTO, April 20 (Reuters) - Toronto-Dominion Bank still sees value in its planned $13.4 billion takeover of First Horizon Corp , TD's chief executive officer said on Thursday, as several shareholders asked him about abandoning or renegotiating the deal. "We see the benefits of the merger," TD Group President and CEO Bharat Masrani said at the company's annual general meeting. "We've outlined (the benefits) very clearly and I've said that many times before. That's why we are into extension discussions with First Horizon." The merger, which is subject to regulatory approval, is unlikely to close by the May 27 deadline, he said, reiterating that the company is in talks about a "possible extension."


Masrani declined to comment when asked if TD was committed to reviewing financial terms or walking away from the deal.


First Horizon could not be immediately reached for comment.


Some shareholders have been urging TD to ditch the deal after the collapse of Silicon Valley Bank and Signature Bank in March triggered a crisis of confidence. TD has said the merger would make it the sixth-largest U.S. bank, up from No. 8, with about $614 billion in assets. The populations in First Horizon's markets are expected to grow about 50% faster than the U.S. national average, offering growth opportunities, TD said. Lawyers have previously said First Horizon could sue for damages if TD calls off the deal, costing Canada's second biggest lender up to hundreds of millions of dollars. (Reporting by Maiya Keidan in Toronto; Additional reporting by Niket Nishant in Bengaluru; Editing by Ismail Shakil, Steve Scherer and Richard Chang)

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