First Union Corp. shares jumped on positive merger news and a favorable report from analyst Ruchi Madan of PaineWebber Inc.

Ms. Madan, initiating coverage with an "attractive" rating, said First Union stock could gain up to 20% in the coming months as share buybacks and merger dynamics kick in.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.