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Friday 26 January, 2001


Equity Funding Completed

26 January 2001

               UBS finalizes equity funding for PaineWebber merger

Zurich/Base, 26 January 2001 - UBS has completed the equity funding for its
USD 11.8 billion (CHF 20.8 billion) merger with PaineWebber, with no further
requirement to issue shares. The integration of PaineWebber has proceeded very
smoothly and is now essentially complete: the final IT and operational changes
will be implemented in early February.

As announced at the completion of the merger, UBS chose to make an initial
issuance of 12 million new ordinary shares, and to re-issue 7 million shares
held in Treasury. The remaining 21.6 million ordinary shares needed for the
merger were borrowed in the market.

Through its Treasury share buy-back program, which started on 6 November 2000,
UBS has now repaid all the borrowed shares. No further new shares will be issued
in connection with the PaineWebber merger. UBS has met its commitment to
minimize the dilution of earnings and voting power, by keeping the final number
of new UBS shares issued as small as possible.

As at 24 January 2001, UBS had purchased 22.1 million shares through the
buyback program, at an average price of CHF 262. The program will continue for
the time being. Any further shares repurchased under the program will not be
cancelled, but will be used for Treasury management purposes, principally to
fund the Group's various employee share ownership plans. In order to ensure
maximum transparency and clarity for investors, UBS will continue to publish the
amount of Treasury shares repurchased every ten business days. Details can be
found on the investor Relations webste at

UBS is and intends to remain one of the best-capitalized financial institutions
in the world. UBS will, however, continue to avoid the build-up of excess
capital, through selectively investing in its own shares. Any shares bought for
capital reduction purposes would be repurchased under a separately announced,
'second-line' buy-back program aimed at institutional investors, allowing tax
efficient cancellation of the shares.


Previous media releases about the PaineWebber merger can be found on

   Cautionary statement regarding forward-looking statements
   This communication contains statements that constitute 'forward-looking
   statements', including, without limitation, statements relating to the
   implementation of strategic initiatives and other statements relating to our
   future business development and economic performance.

   While these forward-looking statements represent our judgements and future
   expectations concerning the development of our business, a
   number of risks, uncertainties and other important factors could cause
   actual developments and results to differ materially from our expectations.
   These factors include, but are not limited to. (1) general market,
   macro-economic, governmental and regulatory trends, (2) movements in local
   and international securities markets, currency exchange rates and interest
   rates, (3) competitive pressures, (4) technological developments, (5)
   changes in the financial position or credit worthiness of our customers,
   obligors and counterparties, (6) our ability to achieve the anticipated
   benefits of the merger with PaineWebber, and (7) other key factors that
   we have indicated could adversely affect our business and financial
   performance which are contained in our past and future filings and reports,
   including those with the SEC.
   More detailed information about those factors is set forth in documents
   furnished by UBS and filings made by UBS or PaineWebber with the SEC
   UBS is not under any obligation to (and expressly disclaims any such
   obligations to) update or alter its forward-looking statements whether as
   a result of new information, future events. or otherwise.