Fidelity Bankshares ( FFFL) surged after the West Palm Beach, Fla.-based bank agreed to be acquired by National City ( NCC) for about $1 billion in cash and stock. Cleveland-based National City will pay $39.50 in cash or 1.0977 common shares for each share of Fidelity. The purchase price is a 9% premium to Fidelity's Wednesday closing price of $36.12. Two weeks ago, National City announced another $1 billion deal to buy Florida Harbor Bancshares ( HARB) in an all-stock transaction. Fidelity was trading up $2.23, or 6.17%, to $38.35 in recent trading. Aetna ( AET) sank nearly 20% after the Hartford, Conn.-based health insurer saw second-quarter earnings fall 1% from last year and said membership is growing more slowly than expected. The insurer earned $389.5 million, or 67 cents a share, compared with $394.9 million, or 65 cents a share, a year ago. Revenue rose 14% to $6.25 billion. Adjusted for investment items and a reserve, Aetna earned 64 cents a share in the most recent period, matching the Thomson Financial estimate. Revenue, which rose 14% to $6.25 billion, also exceeded analyst forecasts. But Wall Street was more focused on Aetna's disappointing news that enrollment was increasing more slowly than expected. The firm now sees overall membership growth of 700,000 to 750,000, down from its earlier guidance of 900,000 to 1 million. "Despite these very strong financial results, certain areas of our business did not meet our expectations," the company said. Aetna shares tumbled $7.96, or 19.92%, to $31.96 recently. Greenhill & Co. ( GHL) gained after second-quarter earnings at the New York-based investment bank more than doubled, beating Wall Street's expectations. The company earned $13.3 million, or 45 cents a share, up from $6.3 million, or 20 cents a share, a year ago. Revenue totaled $59.3 million, up from $29.5 million a year ago.
Wall Street was looking for the company to post earnings of 38 cents a share on revenue of $49.2 million. Also, the company declared a dividend of 19 cents a share to be paid on Sept. 13. Shares rose $3, or 5.61%, to $56.43 recently. Janus Capital Group ( JNS) slipped after the Denver-based asset management company saw second-quarter earnings drop 12% and failed to meet Wall Street expectations. The asset-manager earned $31.1 million, or 15 cents a share, down from $35.3 million, or 17 cents a share, a year earlier. Analysts expected earnings of 16 cents a share. Assets under management were $153.4 billion, little changed from a year ago, and down from $158.1 billion in the first quarter of 2006. In the second quarter, there were long-term net outflows of $400 million, money-market net inflows of $1.2 billion and $5.5 billion in market depreciation. Shares were off 44 cents, or 2.60%, to $16.48 recently. The Phoenix Companies ( PNX) slipped after the Hartford, Conn.-based insurer reported a 12.5% decline in second-quarter earnings and fell short of Wall Street expectations. The company earned $19.6 million, or 17 cents a share, compared with $22.4 million, or 22 cents a share a year earlier. Revenue rose to $628.7 million from $623.9 million. The company reported total segment income of $20.4 million, or 18 cents a share. Analysts were looking for the company to earn 20 cents a share on revenue of $632.6 million. The company now says it does not expect to record full-year positive net flows in asset management and annuities as previously projected. It does project double-digit annuity sales growth for the year. Shares were trading down 28 cents, or 2.07%, to $13.26 in recent trading.