Toronto-Dominion Bank Explores Takeover of US Brokerage Cowen

(Bloomberg) -- Toronto-Dominion Bank, the Canadian bank that’s been expanding through acquisitions, is weighing a deal for the brokerage firm Cowen Inc., according to people familiar with the matter.

The Toronto-based lender is working with advisers to study a possible transaction for Cowen, said the people, who asked not to be identified because the matter isn’t public. No final decision has been made and Toronto-Dominion could opt against pursuing a deal, the people said

Cowen’s shares have declined by about a third this year, valuing the New York-based firm at about $668 million. The shares, which rose 1.5% to $24.04 on Friday, jumped as much as 19% after the close of regular trading.

Representatives for Toronto-Dominion and Cowen couldn’t be immediately reached for comment.

A transaction would extend the reach of Toronto-Dominion’s investment banking arm, TD Securities, deeper into equity and debt offerings as well as research. Toronto-Dominion, one of Canada’s biggest lenders, has been aggressively looking to grow via acquisitions, agreeing to buy First Horizon Corp. in February for about $13.4 billion.