Canada's TD Bank nears $1 bln deal for U.S. brokerage Cowen -source
Aug 1 (Reuters) - Canada's Toronto-Dominion Bank (TD.TO) is in advanced talks to buy U.S. boutique investment bank and brokerage Cowen Inc (COWN.O) for more than $1 billion, a source familiar with the matter said.
A formal announcement could come as soon as Tuesday for a deal that would see TD Bank pay $39 per share for New York-based Cowen. This would be a premium to the $35.49 price at which Cowen's stock closed on Monday.
The source spoke on condition of anonymity to discuss confidential information. Cowen and TD did not immediately respond to requests for comment.
TD's buyout of Cowen would be its second announced U.S. acquisition this year. In February, TD agreed to buy First Horizon Corp (FHN.N) for $13.4 billion to expand its presence in the southeastern United States. read more
Cash rich Canadian banks have been on a shopping spree in the U.S. in recent months, hoping to bolster their operations outside of their largely saturated home turfs. read more
New York-based Cowen, founded over a century ago, offers investment banking and brokerage services to its clients. Its acquisition would give TD Bank increased penetration within these business lines in the U.S.
The Wall Street Journal reported on the talks between the two companies earlier on Monday.
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