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Title: |
Agreement and Plan of Merger |
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Entities: |
Citibank, NA; Paine Webber Group Inc; Cravath, Swaine & Moore LLP |
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Date: |
2000 |
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Size: |
Preview shows 16KB of 209KB total |
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Price: |
$81 |
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ID: |
#1538629 |
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AGREEMENT AND PLAN OF MERGER
dated as of July 12, 2000
by and among
PAINE WEBBER GROUP INC.,
UBS AG
and
NEPTUNE MERGER SUBSIDIARY, INC.
--------------------------------------------------------------------------------
<PAGE> 2
TABLE OF CONTENTS
<TABLE>
<CAPTION>
SECTION PAGE
<S> <C> <C>
RECITALS
ARTICLE I
CERTAIN DEFINITIONS; INTERPRETATION
1.01 Certain Definitions.............................................................................2
ARTICLE II
THE MERGER
2.01 The Merger.....................................................................................12
2.02 Effective Time.................................................................................13
2.03 Closing........................................................................................13
2.04 Reservation of Right to Revise Structure.......................................................13
ARTICLE III
CONSIDERATION; EXCHANGE
3.01 Merger Consideration...........................................................................14
3.02 Rights as Stockholders; Stock Transfers........................................................17
3.03 Fractional Shares..............................................................................17
3.04 Exchange Procedures............................................................................17
3.05 Anti-Dilution Adjustments......................................................................20
3.06 Options; Other Equity-Based Awards.............................................................20
3.07 Dissenting Stockholders........................................................................21
ARTICLE IV
ACTIONS PENDING THE EFFECTIVE TIME
4.01 Forbearances of the Company....................................................................22
4.02 Forbearances of Parent.........................................................................24
ARTICLE V
REPRESENTATIONS AND WARRANTIES
5.01 Disclosure Schedules...........................................................................25
5.02 Standard.......................................................................................26
5.03 Representations and Warranties of the Company..................................................26
5.04 Representations and Warranties of Parent and the Merger Subsidiary.............................37
ARTICLE VI
COVENANTS
6.01 Reasonable Best Efforts........................................................................42
6.02 Registration Statement.........................................................................42
6.03 Parent Documents...............................................................................43
6.04 Stockholder Meetings...........................................................................44
6.05 Publicity......................................................................................44
6.06 Access; Information............................................................................45
-i-
</TABLE>
<PAGE> 3
<TABLE>
<S> <C> <C>
SECTION PAGE
6.07 Acquisition Proposals..........................................................................45
6.08 Regulatory Applications; Consents..............................................................47
6.09 Employee Matters...............................................................................47
6.10 Notification of Certain Matters................................................................50
6.11 Indemnification; Directors' and Officers' Insurance............................................50
6.12 Stock Exchange Approvals.......................................................................52
6.13 Dividends......................................................................................52
6.14 Section 15 of the Investment Company Act.......................................................52
6.15 Affiliates.....................................................................................52
6.16 Letters of Accountants.........................................................................53
6.17 GE Stockholders Agreement......................................................................53
6.18 ERISA Clients..................................................................................53
6.19 GE Amendment and Yasuda Amendment..............................................................54
6.20 Tax Matters....................................................................................54
ARTICLE VII
CONDITIONS TO CONSUMMATION OF THE MERGER
7.01 Conditions to Each Party's Obligation to Effect the Merger.....................................54
7.02 Conditions to Obligation of the Company........................................................55
7.03 Conditions to Obligation of Parent.............................................................56
ARTICLE VIII
TERMINATION
8.01 Termination....................................................................................56
8.02 Effect of Termination and Abandonment..........................................................57
8.03 Termination Fee................................................................................58
ARTICLE IX
MISCELLANEOUS
9.01 Survival.......................................................................................59
9.02 Waiver; Amendment..............................................................................59
9.03 Counterparts...................................................................................59
9.04 Governing Law and Venue........................................................................59
9.05 Expenses.......................................................................................60
9.06 Notices........................................................................................60
9.07 Entire Understanding; No Third-Party Beneficiaries.............................................61
9.08 Severability...................................................................................61
9.09 Assignment.....................................................................................61
9.10 Enforcement....................................................................................61
9.11 Interpretation.................................................................................62
-ii-
</TABLE>
<PAGE> 4
AGREEMENT AND PLAN OF MERGER, dated as of July 12, 2000 (this
"Agreement"), by and among Paine Webber Group Inc. (the "Company"), UBS AG
("Parent") and Neptune Merger Subsidiary, Inc. (the "Merger Subsidiary").
RECITALS
A. The Company. The Company is a Delaware corporation, having
its principal place of business in New York, New York.
B. Parent. Parent is an Aktiengesellschaft organized under the
laws of Switzerland, having its principal places of business in Zurich and
Basel, Switzerland.
C. The Merger Subsidiary. The Merger Subsidiary is a Delaware
corporation and a wholly owned subsidiary of Parent that has been organized for
the purpose of effecting the Merger (as defined herein) in accordance with this
Agreement.
D. The Merger. Subject to the terms and conditions contained
in this Agreement, the parties intend to effect the merger of the Company with
and into the Merger Subsidiary, with the Merger Subsidiary being the corporation
surviving such merger.
E. Voting Agreements. As further conditions and inducements to
the willingness of Parent to enter into this Agreement, (1) General Electric
Company ("GE"), Subsidiaries of which hold not less than 21.0% of the presently
outstanding shares of the Company Common Stock, has entered into an agreement
with Parent, in the form of Exhibit A hereto, (2) The Yasuda Mutual Life
Insurance Company ("Yasuda"), which holds not less than 7.0% of the presently
outstanding shares of the Company Common Stock, has entered into an agreement
with Parent, in the form of Exhibit B hereto, and (3) each of Donald B. Marron
and Joseph J. Grano, Jr. (each such person, a "Management Stockholder" and,
together with GE and Yasuda, the "Voting Agreement Parties"), stockholders of
the Company collectively holding the power to vote not less than 1.0% of the
outstanding shares of Company Common Stock, have entered into an agreement with
Parent, in the form of Exhibit C hereto (each of the foregoing agreements with
GE, Yasuda and the Management Stockholders, a "Voting Agreement", and
collectively, the "Voting Agreements"), pursuant to each of which Voting
Agreements, among other things, each Voting Agreement Party has agreed to vote
or cause to be voted certain shares of Company Common Stock in favor of adoption
of this Agreement.
F. Tax-Free Treatment. The parties intend that, for U.S.
federal income tax purposes, the transactions contemplated by this Agreement
will qualify for the Tax Treatment.
G. Board Action. The respective Boards of Directors of each of
the
<PAGE> 5
Company, Parent and the Merger Subsidiary have each adopted resolutions
approving this Agreement and the Merger and, in the case of each of the Boards
of Directors of the Company and the Merger Subsidiary, declaring the
advisability of this Agreement in accordance with the Delaware General
Corporation Law, as amended (the "DGCL").
NOW, THEREFORE, in consideration of the premises, and of the
mutual covenants, representations, warranties and agreements contained herein,
the parties agree as follows:
ARTICLE I
CERTAIN DEFINITIONS; INTERPRETATION
1.01 Certain Definitions. The following terms are used in this
Agreement with the meanings set forth below:
"Acquisition Proposal" means any offer or other proposal
which, if consummated, would result in an Acquisition Transaction,
provided that solely for purposes of the definition of Acquisition
Proposal, all references to 35% in the definition of Acquisition
Transaction shall be deemed references to 20%.
"Acquisition Transaction" means a transaction or series of
transactions that, directly or indirectly, in substance constitutes a
disposition of (A) assets or businesses that constitute or represent
35% or more of the total revenue, operating income, assets or earnings
before interest, taxes, depreciation and amortization of the Company
and its Subsidiaries, taken as a whole, or (B) 35% or more of the
outstanding shares of any class of capital stock of the Company or
capital stock of, or other equity or voting interests in, any
Subsidiary or Subsidiaries of the Company which, taken together,
directly or indirectly hold at least the share of assets or businesses
referred to in clause (A) above, whether by means of (a) a merger,
share exchange or consolidation, or any similar transaction, (b) a
purchase, lease or other sale, transfer or disposition, or (c) a
purchase or other acquisition (including by way of merger,
consolidation, share exchange or other wise) by a person (including a
group of persons that would qualify as a "group" within the meaning of
Section 13(d) of the Exchange Act) of such assets, businesses or shares
of capital stock, or otherwise.
"Affiliate" means, with respect to any specified person, any
other person directly or indirectly controlling or controlled by or
under direct or indirect common control with such specified person. For
the purposes of this definition,"
-2-
<PAGE> 6
control," when used with respect to any specified person, means the
power to direct the management and policies of such person, directly or
indirectly, whether through the ownership of voting securities, by
contract or otherwise; provided, however, that in no event shall GE or
any person in which it directly or indirectly holds securities be
deemed to be an affiliate of the Company or its Subsidiaries; provided
further, however, that (x) any investment account advised or managed by
such person or one of its Subsidiaries or affiliates on behalf of third
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