[ by Melanie Gretchen ]

Cowen Group, led by former Shearson Lehman Brothers Chairman and CEO Peter A. Cohen, is poised to expand into new business lines.  Dahlman Rose & Co. will be Cohen's latest acquisition, financing the deal in an all-stock transaction.  Both companies are New York-based.

By adding Dahlman Rose, Cowen will get into new industries, while Dahlman Rose’s bankers would be able to take advantage of its new owner’s ability to help companies issue debt.  Cowen

Going forward, Cowen, an investment-banking, trading and asset-management, is looking to change its luck by diversifying.  While Dahlman Rose specializes in energy, metals and mining, transportation, chemicals and agriculture, Cowen focuses mostly on cover health care, technology, media, aerospace and defense.

Concurrent with its planned acquisition of Dahlman Rose, Cowen plans on hiring 100 new employees - increasing its current workforce of 550.  [C-I Note:  That's either confidence, or it's "going for broke" by betting big to win big.]   Apparently, Mr. Cohen exemplifies this attitude with his staff.  Here is his take on the firm's plans:

"We have to evolve into something different, which we are working very hard at doing.  We have a very strong asset-management business. We are very active in investing our own capital."  -- Mr. Cohen, 65, chairman and CEO.

Difficult Times for Cowen.   It may not be apparent from all the buildup, but Cowen has gone through a very difficult spell.  Since 2009, Cowen shares have dropped 55%, and share are now priced at $2.69.    The firm would not divulge how much it is paying for the investment bank, though the deal is expected to go through during the first quarter.

For further details, go to[ Bloomberg, 2/2/13].