First Horizon stock plunges after merger deal with TD Bank is mutually terminated

First Horizon Corp. and TD Bank Group have mutually agreed to end their merger agreement, which was valued at $13.4 billion when it was first announced more than a year ago, the companies announced Thursday morning.

First Horizon shares were plummeting 45% in premarket trading after the announcement. Prior to the announcement, First Horizon stock had been trading well below the $25-per-share deal price, a sign that investors were skeptical that the deal would go through.

TD is planning to make a $200 million cash payment to First Horizon in accordance with its termination agreement. That’s in addition to a $25 million fee reimbursement related to the merger agreement.
 

TD Bank Chief Executive Bharat Masrani said that the announcement “provides our colleagues and shareholders with clarity” and that TD Bank would “move forward with a strong, growing franchise in the United States” though he was “disappointed” with the resolution.