Synovus Financial Plunges 10.54% Amid Merger Investigation

On July 25, 2025, Synovus Financial experienced a significant drop of 10.54% in pre-market trading, sparking concerns among investors and analysts alike.

The Ademi Firm has launched an investigation into Synovus Financial Corp. (NYSE: SNV), focusing on potential breaches of fiduciary duties during its merger with Pinnacle Financial Partners. The firm is examining whether the Synovus board of directors is fulfilling its obligations to all shareholders, particularly in light of the transaction's terms and conditions.

The investigation centers on the fixed exchange ratio of 0.5237 Synovus shares per Pinnacle share, which values Synovus at $61.18 per share. Post-merger, Synovus shareholders will own approximately 48.5% of the combined company, while Pinnacle shareholders will own 51.5%. Additionally, Synovus insiders are set to receive substantial benefits as part of change of control arrangements.

The transaction agreement includes a significant penalty for Synovus if it accepts a competing bid, which the Ademi Firm argues unreasonably limits competing transactions. This investigation highlights the potential risks and uncertainties associated with the merger, which could impact investor confidence and contribute to the stock's recent decline.