the entry of a new major player in the fight to acquire anadarko petroleum reserve global report today as berkshire hathaway prepares a ten billion dollar intervention on the side of occidental occidental made a third. eight billion dollar bill last week interrupting advanced merger talks between anadarko and rival chevron now occidental has a big name with deep pockets on their side should they decide to top chevrons thirty three billion dollars bid by a greater margin occidental is successful and willing anadarko berkshire will invest the ten billion dollars into one hundred thousand new preferred shares of oxy stock the annual dividend would be eight percent the wall street journal reports that a successful bid by occidental would grant berkshire the opportunity to buy up to eighty million occidental at sixty two dollars and fifty cents a share today occidental stock fell before rise rallying above fifty nine dollars by early afternoon and a dark zero has been trending higher over the past week and was pushing towards seventy three dollars in afternoon trading. the oil markets are clearly having

berkshire hathaway announced a $10 billion investment in occidental petroleum which will help occidental finance its takeover of anadarko. here's the deal. berkshire will receive 100,000 shares with a value of $100,000 per share, and will accrue dividends at -- okay, are you sitting down? 8% annually. nice, nice percent there. buffett has a history particularly during crises of making these types of preferred stock investments. for example, during the financial crisis, he did so for tiffany and goldman sachs and harley davidson. could this really be an indication of just how powerful greg abel, the energy vice-chairman and chairman of non-insurance business operations, really has become? the rumored heir apparent has been at the helm of berkshire energy since 2008 and oversees companies like bhe renewables, home services of america, midamerican energy, northern power grid holdings company, and precision cast parts, among dozens of others. even turning midamerican energy into one of the largest power suppliers in the country. so are buffett and abel total geniuses? let's get to our floor show traders. john, when you look

warren buffett's berkshire hathaway has committed to invest $10 billion in berkshire hathaway to buy anadarko. in return for the investment, brookshire would receive a stock -- along with shares of occidental. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am kailey leinz. this is bloomberg. vonnie: thank you. let's check those markets. a down day in spite of some earnings beats. not in earning beat from alphabet and that is dragging on the nasdaq. .6% and theis down dow jones industrial is down .5% right now. this is bloomberg. ♪ vonnie: from new york, i'm vonnie quinn. guy: in london, i'm guy johnson. close" onhe european bloomberg markets. vonnie: let's get a look at the health of those markets. here's abigail doolittle. abigial: definitely looking at a down day. the nasdaq on pace for its worst a in more than a month, down 1.3%. you're the big culprits on both of these indexes dragging alphabet down 8.5%, the worst day since 2012. this after they missed sales estimates on advertisement growth. apple sh

anadarko petroleum. warren buffett is jumping in berkshire hathaway investing in occidental but the preferred stock is contingent on completing the takeover of anadarko going head to head for control of the company making an offer recently that topped chevron's bid. brian sullivan and wolf research i'll begin with you. you have an outperform on both occi and anadarko. do you like it here at the price of the 8% preferred? >> good afternoon. we do like his involvement, not only for occi but the sector as a whole because we think it's an undervalued group and make a good investment here in the sector as a whole but we like his involvement. he's obviously very good value investor, good investor overall. and he gets a nice 8% coupon with warrannings attached to it >> is it too good? people say wait a minute, warren is so savvy, if he's on the other side of the deal, you want to be on his side. >> that's true we definitely have heard some of that feedback this morning for sure but i do think that this provides confidence in their ability to execute on this transaction and the synergies they provided. >> brian, we talk

and global comps and alphabet berkshire hathaway investing $10 million to finance acquisition offer to anadarkodoes it change your mind about backing chevron on this? >> chevron is down i think chevron walks away that's why the stock is up a lot. kudos to gordon hasket i do think that we were discussing on "squawk," they're talking about expenditure capital and i was talking about total endorsement. wirth spoke to me on friday, i think you just walk away now, chevron verses warren buffe buffett. you are in a peace universe. >> david, we got to get your take on this one >> listen, i tend to agree with jim as usual, i don't want top say as strongly as he did but it does put the pressure on chevron. i was planning to come on the show to share reporting of the last couple of days indicated to me that at least based on what i was hearing close to chevron camp or within the camp they were unlikely to compete anyway. a lot of narrative around, mike wirth, wanting to show discipli discipline and some information in terms of the back and forth that took place. when they did get the deal goes beyond 65,

we learned that berkshire would throw in $10 billion in order to help with the anadarko oxy situation. $10 billion to buy anadarko. >> $10 billion and a very big presence with warren buffett. occidental could use that additional $10 billion and reduce the need for a shareholder vote, which would be one of the reasons anadarko said earlier there was uncertainty around oxy's ability to consummate the deal. the question then would be, do they take the remaining stock that they would put into the deal, almost 20%, and try to put a collar on it? if you do that, you give uncertainty to shareholders in anadarko about what they will be getting. we won't know the answers to those questions until we see what chevron does. chevronctation is that would come back with a counter bid, but that was before but that showed up in the fight. at this point, for them to come back, it will be difficult. they will need to go 20% or more above were the last bid. [no audio] the m&a market has really been on an uptick for quite some time now. ,ou look at the u.s. market obviously, as in valuations are very high

lisa: warren buffett's berkshire hathaway has committed $10 billion state and occidental. it is committing an investment to finance the anadarkong up. saying chevron, we will check you out. anadarko gaining premarket as the expectation of a higher bid picks up. david: that does it for bloomberg daybreak. coming up on bloomberg -- the open, twitter global vice president of content partnerships. live from new york, this is bloomberg. ♪ jonathan: from new york city for our audience worldwide. i'm jonathan ferro. "the countdown to the open" starts right now. ♪ jonathan: american officials touching down in beijing, stuck in the final stretch of talks. economic data in china stuck in a soft patch. the economic sector expanding at a slower pace. it is left to europe to provide stronger surprise. the eurozone delivering an unexpected growth spurt. 30 minutes from the start of trading. here is your tuesday price action. futures down .1% on the s&p 500. dollar weakness and euro strength. euro, 1.1220. treasury yields creeping higher to 2.54 on the u.s. tenure. we begin with the big issue. investors remaining confident in a chinese rebou

. >> all right >> still to come, berkshire hathaway's warren buffett pledging $10 billion to occidental petroleum to help the oil producer knits bid for anadarkolus facebook making a push into privacy >> i know that we don't exactly have the strongest reputation on privacy right now to put it lightly. but i'm committed to doing this we well and to starting a new chapter. s ade'll take to facebook'he of messenger about the company's plans coming up in a first on cnbc interview don't go anywhere. i like to make my life easy. ( ♪ ) romo mode. (beep) (bang) good luck with that one. yes! that's why i wear skechers slip-ons. they're effortless. just slip them right on and off. skechers slip-ons, with air-cooled memory foam. >>> yesterday we told but the energy love triangle between chevron, oxy and anadarko. warren buffett playing cupid committing to invest $10 million in anadarko if it successfully beats out chevron to take over the company. could buffett's arrow help seal the deal for occidental? joining us to discuss is tim razan from oppenheimer thanks for joining us. is extra funding crucial to who's going to win out >> we believe it is. it's a