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Paine Webber tops target
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July 12, 2000: 8:12 a.m. ET
Earnings report comes on heels of deal to sell company to Swiss bank UBS
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NEW YORK (CNNfn) - Paine Webber Group Inc. reported smaller-than- expected drop in second-quarter earnings Wednesday, hours after agreeing to be purchased by Swiss investment bank UBS AG.
Paine Webber, the nation's fourth-largest brokerage firm, earned $146.3 million, or 95 cents a diluted share, excluding special charges. Analysts surveyed by earnings tracker First Call had forecast 92 cents. A year ago, net income was $163.5 million, or $1.02 a diluted share.
 Including charges related to its merger with J. C. Bradford & Co., the company reported net income of $127.5 million, or 82 cents a share, in the latest period.
Net revenue, which represents revenue less interest expenses, gained 4.7 percent to $1.4 billion from $1.3 billion a year earlier. Revenue from commissions and asset management posted gains in the period while revenue from principal transactions and investment banking fell below year-ago levels.
For the first six months, Paine Webber posted net income of $303.9 million, or $1.98 a diluted share, down from $324.1 million, or $2.02 a share, a year earlier. Net revenue rose to $3.0 billion from $2.7 billion.
Paine Webber (PWJ: Research, Estimates) agreed to a takeover bid from UBS of $10.8 billion in cash and stock that will pay shareholders $73.50 per share, a premium of 47 percent based on Tuesday's closing price. Shares of Paine Webber gained 3-3/16 to 49-15/16 in Tuesday trading, while shares of UBS fell 4.5 percent to 431.5 Swiss francs Wednesday before the announcement suspended trading. 
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