UBS AG to buy PaineWebber for $10.8 billion

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Zurich--In a blockbuster deal, global banking giant UBS AG is to acquire New York-based PaineWebber Group Inc. for $10.8 billion. The deal gives UBS, one of Europe's biggest institutional money managers and a financial Internet leader, greatly extended reach into the lucrative U.S. corporate marketplace. Still, the purchase comes at a perilous time for PaineWebber, which recently reported a 22% decline in second quarter profits. PaineWebber's U.S.-based competitors, including Merrill Lynch & Co. and Morgan Stanley Dean Witter & Co., have taken a broad lead in the b-to-b Web marketplace.
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