Cowen jumps on report Toronto-Dominion bank said to weigh potential purchase

JHVEPhoto/iStock Editorial via Getty Images

• Cowen Inc. (NASDAQ:COWN) soared 15% in after hours trading on a report that Toronto-Dominion Bank (NYSE:TD) is considering making an offer for the brokerage firm.
• The Toronto-based bank is working with advisors to analyze a potential deal for the broker, according to traders, who cited a Bloomberg report. No final decision has been made.
• Cowen has a market cap of just over $700 million.
• Recall late April, Cowen stock jumped after Q1 earnings top Wall Street expectations,

Comments

[smokyy]

cown risky, if anyone sells OPY will, be worth $65 now $33, much better counter cyclical business, and rates popping as will OPY shares!

[ffnorth]

With almost 20% short interest, I can't wait until the open on Tuesday.

[Rearden Steel 2112]

Cowen generated a lot of fees from SPAC deals. TD can help them find a way to replace that revenue while subsidizing the costs. Sounds like a fun rainy day project during a bear market!

[paularowland0413]

I own TD, and I can tell you I am perplexed with this move. They bought Ameritade, which became TDAmeritrade, which bought ScotTrade. Then sold TDAmeritrsde to Schwab a couple of years ago and now they are considering buying a brokerage firm. I am trying to understand it. Maybe it's the deep discount bargain.

[Jeff Milligan]

I agree

[Corporate Governance Cowboy]

This would make about as much sense as a wool raincoat… which probably means that it is true

[mitisad4]

@Corporate Governance Cowboy Why does it not make sense??

[Jon Bobolia]

dirt cheap, smart move

[SwFlaguy]

@Jon Bobolia maybe a bidding war?

[Sane Man]

@SwFlaguy Cowen offers very little in the form of assets under management. TD wants it as a way to get a US based mid-tier research firm to expand its product line. There will be no bidding war. Firms like Cowen a dime a dozen. And most takeovers of this type after 2 years-when the targets principals and key employees can fully cash out leave less to be desired-which will result in layoffs . In businesses such as this , the true value rides up and down in the elevator every day.

[katieliu76]

@Sane Man Mid-tier research? TD already has that...