Why Shares of First Horizon Are Surging Today

Shares of First Horizon (NYSE: FHN) had jumped nearly 30% as of 10:58 a.m. ET today after the bank announced that it will be acquired by The Toronto-Dominion Bank (NYSE: TD).

TD Bank will acquire First Horizon, a regional bank in the southeastern U.S with roughly $89 billion of assets, for $13.4 billion in cash, or $25 per share. However, if the transaction does not close before Nov. 27, First Horizon shareholders will get an additional $0.65 per share on an annualized basis for the period from Nov. 27 until the day before the deal closes. This clause might have something to do with the fact that the Federal Reserve has been slow to approve bank deals in recent months.

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Source Fool.com