TD says it’s still in talks on extending First Horizon deal but offers little detail

Shareholders looking for an update on TD Bank Group’s US$13.4-billion takeover of First Horizon Corp. were left with few answers at the bank’s annual meeting Thursday.

Facing numerous questions about the deal after U.S. banking turmoil has pushed down the value of Tennessee-based First Horizon, chief executive Bharat Masrani stuck to a statement that they are in negotiations about a potential extension of the deal past the May 27 deadline.

It’s the same message he gave in a March earnings call when the bank disclosed that they don’t expect to secure regulatory approval of the deal by the deadline, without providing details on what might be causing the delay.

Since then, the collapse of Silicon Valley Bank and Signature Bank have put pressure on the U.S. banking sector and led to calls from some for TD to walk away from the deal that it first announced in February 2022.

Pressed by shareholders, Masrani said he sees the benefits of the merger, but notably absent in his comments was his March statement that the bank was “fully committed to the transaction.”

Outside of the deal, the meeting saw several shareholder proposals go to a vote related to climate change as well as on executive pay ratios and the financialization of housing.

The Canadian Press

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