Cowen Group turns down $7-per-share offer from Rodman & Renshaw

By Lisa Kerner

Charlotte, N.C., Dec. 8 - Cowen Group, Inc. rejected an unsolicited acquisition proposal from Rodman & Renshaw Capital Group, Inc. to acquire Cowen for $7.00 per share.

The offer would have consisted of 50% cash and 50% Rodman & Renshaw stock.

Cowen, a New York investment bank, said it believes there is "significant risk that a transaction with Rodman & Renshaw would result in the destruction of shareholder value."

According to Cowen, it does not intend to discuss the proposal further with Rodman & Renshaw.

Rodman & Renshaw said its offer is approximately a 20% premium over Cowen's closing price of $5.60 on Dec. 1.

In a Dec. 4 letter to Cowen's board of directors, Rodman & Renshaw said its proposal offered "attractive financial terms" and "a compelling strategic fit."

"In addition to the revenue-oriented synergies that would be derived from our complementary business mix, the natural fit between our two companies presents a clear opportunity for overhead reductions, operational savings and other efficiencies," Rodman & Renshaw's letter said.

Rodman & Renshaw is a holding company based in New York. Its subsidiaries include investment bank Rodman & Renshaw, LLC, Rodman Principal Investments, LLC and Miller Mathis & Co., LLC.

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