Strategic acquisitions are interesting on multiple levels, not the least of which to me as an analyst and model-builder is how strategic buyers perceive and value target companies. I’ve been bullish on First Horizon (FHN) for some time, even with ongoing execution challenges and risks, but even I was surprised to see the premium that Toronto-Dominion Bank (TD) (“TD Bank”) was willing to pay for these shares.
As a First Horizon shareholder, I can’t say that TD Bank is shortchanging me. If anything, First Horizon did a good job of securing not only a good price for what First Horizon should be worth on a standalone basis, but also a piece of the strategic value of First Horizon to TD Bank as a way to extend this bank’s presence across the faster-growing Southeast United States. Although there are some regulatory risks to the deal closing, and closing on time, I believe shareholders are getting a fair price and should likely keep an eye on the door for an exit.
Read the full article here:
TD Bank Sees The Potential And Strategy Value In First Horizon, And Pays Up To Get It
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