ackman knows more than other investors in the market?he got the information legitimately from valiant. >> but you have to admit, it smell s bad, back in the '80s, e got information on others who attempted to buy the company, shares would pop, company would buy those shares back from that person. we call that green mail, i'm not saying that is where bill ackman is going with this, but there is a precedent on him making a bid, and profiting. is there a need for a new rule to prohibit that kind of trading? what do you think? >> well you mentioned in your lead-in to the story that the green mail practices of the '80s, part of the reaction to that was the innovation of the poison pill, which protects companies to a considerable extent from having to pay green mail. once they have adopted the poison pill they can sit still and ignore mr. ackman if they do not want to proceed with the merger. so the question would be whether investors should be entitled to know about large accumulations of stock being assembled by activist investors. the sec ha

did bill ackman cross a line? some of things that he's able to do, you cannot, including getting and using information that some -- some would say is insider information. is the market free and fair or not? we will explain it and fight it out coming up. my partner ty is out today, so simon is my partner down at the new york stock exchange. hi, simon. >> hi, sue. a lot of peaks and valleys. as you said we're down so far. seema mody is in times square as we start this hour with more on the stocks that quite frankly have taken everyone for a ride. >> let's talk about what's been happening with the nasdaq. even after six days of wins, the nasdaq has only regained about half of the 8% it lost since its march peak. so a lot of the family names we talk a lot about, often thought of as leading indicators have gained the most leading this bounce back. are these the tea leaves that it's back to the good old time for the nasdaq? not so fast say the trader and investors i've been talking to. in fact they've been giving me mix

bill ackman will be our special guest. he's making waves as he teams up with valeant in a bid for allergan. we'll talk about this more coming up, including comments from carl icahn. he was on the opposite side on herbalife. there's a lot of enimity. >> at one point he said i have nothing at bill ackman. he made me $400 million. i like him. >> there's been a lot of bad blood there. >> he was saying in a way he took advantage of him. >>> dow chemical, procter & gamble, boeing, apple and facebook all being released today. a lot coming up. at 7:30 eastern time, the dow chemical ceo will be joining us and we'll be hearing from at&t ceo john stevens. the company says it had a higher than expect ed amount of customers switching to a new plan. if you take a look at what's been happening with at&t shares, you'll see at least it was down by 2% after hours, i think. 35.50 was the last trade. >> yum brands getting a boost from stronger sales. where it's most important, china, the parent of kfc, taco bell and pizza hut says that first

bill ackman will be our special guest.ng waves as he teams up with valeant in a bid for allergan. we'll talk about this more coming up, including comments from carl icahn. he was on the opposite side on herbalife. there's a lot of enimity. >> at one point he said i have nothing at bill ackman. he made me $400 million. i like him. >> there's been a lot of bad blood there. >> he was saying in a way he took advantage of

so the far he has collected $80,000 from ackman. >> you tried to hide this from me?look there were thing thousands. >> reporter: why did you do that? how can anybody believe what you say if you are not truthful abut this? >> look, brian. >> reporter: answer that question, can you? >> look, i had a job. i lost my job. this agreement protects me from losses. >> reporter: according to the deal. he has provide information to government agencies investigating herbalife. did you disclose this to the federal agencies? is how lawyer, steven alexander, ended the interview. >> we are done, brian. we are not talking, we are not talking about, what he talked to federal. >> his deal requires him to look for a new job and tell the truth in his disclosures about herbal life. he says the stress of being a whistle blower has take in a great toll on him and that always he has told the truth. borquist's lawyer says it was our fault for not asking the right questions. but by not disclosing the deal to us ridgeally we found it hard to put him on the air as some one claiming his former co

bill ackman teaming up

bill ackman, they have 9.7%. >> bill ackman will be joining us at 10:00 a.m. today. >> the work on is a superb. i can't convey enough, if you're part of global wall street worldwide, you have to read matt levine in bloomberg view on bill ackman. bill ackman should read matt levine. >> you have described this as a seminal deal going back to the 1980's. 's idea.is levine we go back to the hostel, true hostile takeover. >> you wonder why more people don't do this and whether it will open the floodgates. no third front-page story, longer union-free. pilots voting -- to join air line pilots association. 70% voting in favor. , there will be contract talks. investors don't like it because the stock was up 2% and once the word got out about the vote, the stock dropped. >> why do i feel squishy if i know my pilot is making $37,000 a year? >> you would rather they make $80,000? >> well, i don't want to pay for it. did we say this on the show like a year ago? >> what? >> airlines are ridiculous. >> with the add-on fees. >> i don't like that. --i don't fly, but >> we scal

then we heard from big ackman. he made interesting points about why he stayed away from pharmaceuticals in the past, but why this deal was attractive to him. let's take a quick listen. >> in pharmaceuticals before. why is that? because the typical pharmaceutical business, you have products constantly coming off patent, investing huge amounts of money on speculative r&d. price pressure, but then i learned about valeant. what we like is it fits our paradigm. a business with durable products and brands. the persistent cash flow we look for. >> reporter: so a lot of attractive points for bill ackman. he's betting very big on this. 30% tied up in the combination of his investment in valeant, and also in all elergaallergan. >> and we know you'll keep covering it for us all day long. let's look at this and all the deals. meg tirrell, thanks for being with us. why do they have it? >> two billion product -- botox. half of its sales come from therapeutic uses, in migraines, testing it for things like depression and pain. it

in between, william ackman. this, went a primer on will get you ready for that interview with bill ackman at 10:00 a.m. this morning. look for those three interviews. -- i havetreated tweeted it out a number of times. host, irwin simon, ceo of hain celestial. i have agreed to do a juice cleanse. >> that will be a painful week for you. a week? >> it could go nine days if you want to do it right. >> china's may factoring sector is struggling. her to sing manager index shows

ackman in the twitter question of the day. if you were bill ackman, what would you target next? he has been very busy whether it is netflix or herbalife. we steer away from the corporate world and go to politics. joe biden in kiev to show solidarity with the ukraine. his message is we want to be your friend, your partner. john kerry warning there will be consequences. script.t to rip up the what did you learn on your european trip? >> that google maps is superior to apple map. quietseems to be calm and after the european debt crisis from a couple of years ago. you do not sense the panic. at least in italy. >> your children were well behaved? >> they were well behaved. very cool you drag your children around euro. a dead market. how will the economy performed? summer, fall and winter of 2000 14. robert roberson has seen quiet times before. guest host. she strategist at sandler o'neill. also joining us is jon erlichman. what the title. that is so cool. chief senior west coast correspondent in charge of the sunset tower bar for me when i am out there. looking at the markets. they a

some say that's what bill ackman did. the former head of the securities and exchange commission harley pitt weighs in exclusively about whether or not it's legal. >> very thorny, controversial issue. here's the numbers and all that we have for you right now. the dow, as you see, rallied from the get-go. european markets reopened today after the easter holiday. and they were in a buying mood as well. the european markets were higher this morning. the dow up 96 points off the high. we need to get to 576 for the previous all-time high. so as you said, we're about 31 points away right now. nasdaq up 45 points. once again, the strongest of the major averages with a gain of more than 1%. now at 41, 67, and the s&p at this hour is trading up 11 points. we're trading at 18.83. joining us today, kenny pulcari. steven wood. chris hobard. and rob morgan. good to see all of you. kenny, i am not picking on you. but we do bring you on because you are the resident skeptic here and the market just keeps going higher here. >> it really do

bill ackman has victory in his war on herbalife.starbucks ceo on where he stands on raising the minimum wage when we come back. ♪ >> this is "lunch money." we are fully digital, we are online, we are on mobile, we are on apple tv, everywhere you are. today's moving pictures -- troops from venezuela's national guard fired tear gas on protesters in caracas. this came days after the president held talks with opposition leaders in an effort to end the crisis. the antigovernment demonstrations are entering their third month and have left 39 people dead. firefighters in chile are struggling to control a massive blaze that has destroyed more than 2000 homes around the city. it started two days ago in a forest outside of the city before spreading to nearby homes. 12 people have been killed and 8000 have been left homeless. the search for the missing malaysian airlines jet has entered a new phase. they have deployed an unmanned submarine to scan the ocean floor. it is being used after they stopped picking up an underwater signal. today, bill

why partner with bill ackman? isa bill in pershing square much better at trading and doing that type of thing. we don't have people with those capabilities. second, we did not have $4 billion to put at risk. mr. ackman and his team have contributed $4 billion towards our cause, they can be an independent voice. they are the largest shareholder we have. thelly, in terms of probability of this deal being done, having a third-party validating our business model that truly believes the combination of this for the short-term and long-term, that is a huge asset. >> the deal is very complex. they basically purchased 30 million allergan shares and announced a plan to purchase the whole company with stock surges. if the deal goes through at the offered price, ackman and valiant will save $830 million on the deal. he explained his thinking this morning on "market makers." fruitful, as we get a we will acquire the underlying shares. this is the exact same economic exposure is if we owned the stock. >> we don't want to partne

billionaire bill ackman has a new tactic now.lot of them, but now a new one to try to turn up the heat on the nutritional shake maker herbalife which is coming out with numbers after the bell too. a lot of news around herbalife. charlie gasparino is churning out the effort here to break stories on it. he's got them. he's got whether it's likely to work on behalf of ackman and what we can expect from herbalife's earnings report. and later this week, oh, yes, it's time for nebraska. i'm heading to omaha for the berkshire hathaway annual shareholders' meeting. i will, of course, be speaking with warren buffett himself, several of his top lieutenants and a couple of surprise guests. i'll be getting their thoughts on everything from coca-cola to benjamin moore to the greater economy. all kinds of companies. very few people, very few networks get the kind of access. you will get it through us here at fox business. do me a fave, you can tweet me or facebook me, just hughes the hash tag askliz, and you can tell me what you would like to

bill ackman has victory in his war on herbalife.tarbucks ceo on where stands on raising the minimum wage when we come back. it is 26 minutes after the hour, which means we are on the markets. u.s. stocks are rising today, rebounding after the worst weekly losses and two years. better than expected retail sales help to give markets age-old early on. one we're watching is web m.d.. the site is forecasting sales will come in at $132 million, at the high end of the range. they are surging by $.17. we will be on the markets again in 30 minutes. ♪ >> this is "lunch money." we are fully digital, we are online, we are on mobile, we are on apple tv, everywhere you are. today's moving pictures -- they fired tear gas on protesters in caracas. this came days after the president held talks with opposition leaders in an effort to end the crisis. the antigovernment demonstrations are entering their third month and have left dirty nine people dead. firefighters in chile are struggling to control a massive blaze that has destroyed more than 2000 hom

why does valeant need big ackman?king position. it's 10% of the votes. these are not easy to win. you know, we think -- you know, it's some cash but a lot of equity, so the allergan shareholders can participate. we think it's a higher probability of success to own the shares going into the announcement. >> and you use the word handoff to ackman. does that mean you guys are going to -- once you step off the board -- reduce your position in -- >> no, we love the combination, for all the reasons i described. we have a big position. >> it's the second largest position in your fund, certainly you're one of the largest shareholders. >> right, we think there's more to go. there's allergan and more. >> what, pfizer? merck? we could be $100 billion company. what's next? >> yeah. the one thing is mike has proven that the execution's there. and so, you execute and then you look to see what else there is to do. >> a couple of minutes left. can we talk a little microsoft here? again, a year ago, you took a sizable dollar position.

bill ackman still on the losing side of the herbalife trade.can't the big dogs get the business done like they did is just a year or two ago? joining us now, raymond james investment banking vice chair. sometimes they do very good things for a company's stock. what about in these cases, the new group of activists who have been around for a long time. bill ackman has gotten extremely emotional but herbalife. >> par this is almost a philosophical question about multilevel marketing where i have a lot of experience personally as an investment banker. it is easy to demonize multilevel marketing and say it is all about the parent company, all about whoever is at the top of the lineup representatives. at the same time we should remember a lot of people generate incremental income, which i know bill ackman has been dismissive of by working seasonally. that is important to a lot of family. liz: carl icahn sees it that way. he backed away frompl s that mean he figured out these guys are not moving an inch on my demand? >> you cannot fight the market in

in the last hour we welcomed bill ackman.eorge and john stravinsky are here, as well as mike mayo. mike has embraced the trend and is calling himself the activist analyst. we are asking, who else should be speaking up? welcome, mike. you and i have talked about this. there was an op-ed earlier this month in "the new york times," where they made the case that a fringe minority was dominating the activist debate and more people need to participate. institutional shareholders, like blackrock, for example, analysts like yourself, perhaps even the media. is that how you see your self? have you always seen yourself that way? >> thank you for having this panel. thank attention to the comments from earlier, this is my day job. you call it activism, this is our responsibility as analyst investors. just because you have $100 billion in analyst funds, what about the $100 trillion in money under management? i got back from the annual meeting in st. louis yesterday. we have the annual meeting for suntrust. you know how many people asked q

so -- liz: do you follow bill ackman?ause he is very involved in herbalife. >> yes. he is in our app. you can see all his holdings and icahn and other investors on the opposite side of the trade. liz: exactly. meet the billionaires and one-year performance is pretty impressive for all of them. listen, thank you so very much. great to see you. we'll be watching for the etf. come back when you're ready to launch. liz: thank you, liz. nice to see you. liz: david, who doesn't want to invest like billionaire. david: you will talk with a billionaires, right? liz: speaking of. i'm getting ready to head out to omaha, nebraska, for my weekend with warren buffett coverage. they like to call it the weekend of capitalism. we are right next to warren buffett the whole entire weekend. i will be speaking with warren buffett himself as well as some surprise guests. you know he has 79 companies under his umbrella. ones that you are all very familiar with. some of the managers don't often talk. guess what, i have rare behind the scenes acc

i'm not mad at ackman anymore. i made $300 million because of ackman. you have been so active in apple this year. herbalife has caught everyone's attention. can you give us any hints at what you are looking at next? >> no, i can't. i will leave it at that. >> you know i will try. >> you have to ask, i know. >> carl icahn, thank you very much for joining me today. talking about the reasons why he is dropping his proxy fight with ebay. >> thank you. trish will return at the top of the hour to speak with bill gross. we will get his reaction to the bloomberg businessweek cover story. up, look at what russian president vladimir putin may do next to show the west he is not budging on ukraine. ♪ ministers atinance the imf world bank meeting in washington are discussing more aid for ukraine, russian president vladimir putin is threatening to stop gas deliveries through the country. this latest threat from a scout -- is it his biggest economic trump card? >> it is certainly a big one. ukraine is dependent on russia natural gas. if he is talking about cutting off

this is what bill ackman has been waiting on.any who have said he was crazy to do this, it has been regulatory short, you are waiting on the u.s. government to take action. finally it is. mullis and herbalife had spoken proactively, and said you are crazy to be in bed with him on this. now the tables are turning. the one analyst covering left davidson months ago to work for one of the largest holders. >> as part of this ongoing battle between bill ackman and other investors, is there any indication that the company's performance has been slagging? >> not necessarily. everything is saying is fraudulent. it is tough to say, is the company showing signs of weakness? yet to show their sales numbers. that is what he has been asking for for months. it is anonymous distributors who don't have to share numbers of their selling arise. to say how the company does, we have never known how they have done because they have been behaving illegally. >> carl icahn is supposed to be a smart guy. >> 17 million shares. >> a smart investor. you thin

bill ackman reminds me of people and some of these attorney generals received $30,000 from bill ackmany back. it reminds me of the people who tried to blame the swire mortgage crisis -- the entire mortgage crisis just on the banks. where's the personal responsibility here in is. liz: again, nobody holds a gun to your head to say distribute this stuff. >> nobody held a gun to say take out a mortgage. liz: all right. so maybe there will be another attorney general who -- >> there will be. liz: charlie gasparino. don't say he didn't tellll you. >>> closing bell ringing in 28 minutes. one of the world's biggest cruise lines making a huge bet on future growth by shifting a gigantic cruise ship to a gigantic country on the other side of the world. which pane making this change of course -- company making this change of course, and will it pay off? ready to speak mandarin? and google's gamble on everything from robots to google glass is costing the tech giant a pretty penny. is google stretched too thin to win, or should it continue to innovate like it has? we'll find out whether google can s

bill ackman and valeant farm suit kls teaming up to buy allergan. david. >> this is a fascinating story and one of the first times i can remember at this point seeing an activist teaming up with a large corporation to mount a hostile bid. that is what this is. in fact, as i have been reporting or at least we have been reporting, the board of valeant expected to meet this evening. there will be an offer made for allergan tomorrow morning in conjunction with this filing by mr. ackman that we have gotten today. the leaks of which started around 4:01 or 4:02. take a look at allergan stock price to see what it has been doing as ackman's purchasing square bought a good deal of stock. crossed the 5% threshold about ten days ago and had that window to ramp up to get near 10% stake. for valeant which is the aggressor here, this is the company that continues to acquire. when it does so, it acquires a company. it cuts out all of r and d and guts a lot of the cost structure of the company and benefits from having a non-u.s. tax regime. it is not a u.s. tax file

pierson, bill ackman is a billionaire so they got the job done.00, we will do a deep into activist investing. that will be after the interview of bill ackman at 10:00. >> looking forward to that, thank you so much. smellway to see and movies. at4-da front row look technology. we will find out if it is the wave of the future. ♪ >> it's time for today's -350mberg big number versions of the new marvel flick created for worldwide distribution. they cut the number in 17 days. films can come in any combination of 2-d or 3-d or even 4-d. one studio executive said it's controlled chaos. international audiences love ageeing films in 4-d now is bringing new facts into a theater in the u.s.. will local audiences embrace this new technology? jon erlichman went to the 4-d center of california. >> welcome to the movie theater at the future. if you thought 3-d was cool, try adding moving chairs, bubbles, water, strobe lights, the secular and smoke. >> let's do it. >> my theater shaking. >> the company behind this whichlogy isveejay rolled out in its own bitters

>> because ackman is part of a group buying the stock to own the company.ant which also could have gone out and bought the stock and did buy a little bit. therefore, they're going to own the company and make an offer. they're not benefiting personally in sense of apart from the partnership. >> to many people that that would seem semantics as ackman has a stake in his own business. >> his fund benefited from it but part of the group making a bid. >> i also want to bring up today is the day where coke shareholders will get their vote. covering this story for a long time and it has been sort of dramatic, much more than usual, because coke shareholder david winters, wintergreen, value investor raised a public loud debate on management compensation. he really started this call back in march urging shareholders through a number of letters, interviews here on cnbc, to vote against the equity plan saying it's dial dil looted for shareholders by 14 to 16%. he only owns about 2.5 million shares for coca-cola, less than 1%, we know that other small shareholders have s

bill ackman pursuing a takeover of allergan.bc contributor herb greenberg who has covered these companies extensively. herb, your initial thoughts? >> i did a piece on whether valiant will overdose on acquisitions. this is just back in january. people don't know valiant. valiant is a huge rollup. you have to understand this, of drug companies. its goal is to have $150 billion in market cap over the next three years. allergan is $42 billion in market cap. valeant is $42 billion, so that gets you to 80. they said they wanted to do a merger real soon. this is that merger of equals. >> what do we make of the fact the stock is higher? generally, when you see a company get acquired, the stock moves higher, but valeant has moved higher by 10%. why is that? >> this is fitting with the strategy people expect for the company right now. i think this is also going to start shining a bigger spotlight on valeant, and so, i think going forward after the sort of dust falls from this, people will look at valeant, look at the balance sheet, looki

on the one side, bill ackman who really started it all. made some good bets in his past and some ones that didn't work out like, of course, jcpenney, but he does not like herbalife, says it's a pyramid scheme, is very much a believer that it is a huge, problem company. betting against it, shorting against it. on the other side, carl icahn and george soros and a few other names, big believers, impany aly came in after just to take the oh side of bill ackman's trade. but today it is getting hammered in the wake of, first, charlie gasparino's report on this show and he tweeted it that 20/20, the investigatorrive program -- investigative program is going to do some kind of expose. it was supposed to have aired by now as charlie reported, but then at 3:46 p.m., just a few minutes later eastern time, the financial times put up on its web site, who knows, you know? that the department of justice and the fbi are also -- let's put up new skin, too, because sometimes it moves in tandem because they are both multilevel marketers. also down but only b

ackman who, you know, clearly a smart man, and he shorted the stock.at point he wants to talk it down and, you know, raise doubts and, you know, anything to get that stock price down. it's a problem. liz: yeah. and now you've got a senator, david -- [laughter] who was interested in getting involved in this. senator markey of massachusetts who had a very long meeting, apparently, with bill ackman even while other constituents were waiting outside to talk to him about other things. it just makes you wonder if you can buy access like bill ackman has. and here's carl can along with george -- icon along with george soros, he opportunity even drink the shakes. is it best to stay away from this, david? >> balls and strikes are called properly by the federal enforcement agencies. they're not going to be influenced too much by a congressional inquiry. and i think people should take a careful look and make sure they're making a good judgment, but i don't think the existence of an ftc investigation should get stockholders to shy away from herbalife. >> first, thi

and tomorrow on squak box we have bill ackman.ouple of big interviews. >> bill does a great presentation. >> yes. >> he is so smooth. >> did you see the slide with the potential targets and rollup targets for valgaen which would be the company. >> my point is that the kind of gain -- >> oh, smart. >> still ahead, we're hitting all angles on the turn around. up next, why the technicals on the chart for one biotech name. later, it's not just apple and amazon dominating the earnings headlines. big name reports on deck for the likes of gm and starbuck's. that's still straight ahead. >>> call it a >>> call it a case of the tuesdays. another day in the green today setting a strange trend. tuesdays in particular in the s&p 500 is more than 8 %. for all the days this year stocks are down around 6%. what? >> guy and i were listening two for tuesday. >> i remember wplj on long island. >> you have seen the entire year's gains. it does give you a sense of how we have reacted going into long weekends. i think it tells you about some of the ner

ackman gave him $30,000. ackman is very big contributor to eric schneiderman. melissa: sky is starting to fall on so-called high frequency traders from the book "flash boys" from michael lewis. new york attorney general, we talked about eric schneiderman, throwing down six subpoenas to financial trading firms on their relationshipses with exchanges. here is charlie gasparino along with "wall street journal" veronica dagher and new oak's james frischling. veronica, what do you hereof hear about this? >> we have the fbi looking into this. we are hearing a lot of people looking into the high frequency trading especially michael louis which's book. this brought it to the mind of the populace. melissa: does this amount to anything. >> i read the book. the book is one of the thinnest investigative books i ever read but -- melissa: here is what he says. high frequency traders can't do this alone. firms can engage in latency arbitrage because exchanges sell them special services that allow them to get sneak-peek at market price. seems he should go after exchanges if th

and another bloomberg tv programming note, bill ackman will be on the markets tomorrow at 10 a.m.rn. ackman is making a push with valeant pharmaceuticals to purchase allergen. ♪ >> thousands of people gather this weekend in denver, center park.vic they were celebrating the legalization of marijuana in the state park. the first legal outlets opened this year. envape'sop[ chief revenue officer, todd mitchell. tell me about the company. >> we are about 125 employees in colorado. we license in multiple states around the country. we are in california, washington, soon to be oregon, soon-to-be innd others. we grew last year about 12%. >> in terms of sales? >> yes, and growth of market capture. >> tell us about the product. what are you selling? --it is a vaporizing been pen company. we have a battery attached to a cartridge that is filled with cannabis oil. you're able to vaporize that at a certain temperature. the battery heats the cartridge and the cartridge produces vapor. >> and this has been approved for medical use of marijuana? where they only have medicinal law, then that is whe

with bill ackman they have a lot more game. >> bill ackman does not work alone.is always sourcing these and then he makes them happen. >> he has an iron got like no one else. this is not a slam down, they have got to get this through the sec. look at his training history, herbalife, fannie and freddie, the automakers. unity government intervention. investors, short sellers and activist investors, would not invest that way knowing how unpredictable the government is. this is not a clear path, they could get roadblocked. yearset with ackman ago. we know more about our name that anyone. no, they said we know more. that level of research. >> i have spent an enormous amount of time with bill, whether he is right or wrong he knows his stuff inside and out. people who have said there are antitrust issues, it does not seem that there are. as far as insider trading goes, you would have to share nonpublic information and there would have have to be a breach of a fiduciary. valeant and ackman have shook hands, they are in for the long haul. >> a great evolving story. >> doe

and another bloomberg tv programming note, bill ackman will be on the markets tomorrow at 10 a.m.rn. ackman is making a push with valeant pharmaceuticals to purchase allergen. ♪ >> thousands of people gather this weekend in denver, colorado's civic center park. they were celebrating the legalization of marijuana in the state. the first legal outlets opened this year. joining me now is openvape's chief revenue officer, todd mitchell. tell me about the company. let us start off with the scale of the company. how big is it, what are its products, and what has happened in the last 12 months? >> we are about 125 employees in colorado. we license in multiple states around the country. we are in california, washington, soon to be oregon, and colorado and soon-to-be in others. we grew last year about 12%. -- 1200%. >> in terms of sales? >> yes, and growth of market capture. a pretty fascinating 12 months. >> tell us about the product. what are you selling? >> it is a vaporizing pen company. we have a battery attached to a cartridge that is filled with purified cannabis oil. you're able to

but this is not a slamdunk for ackman or valeant at this point.options but this is a watershed moment for activism, like the monitor last night -- this really legitimizes them, they are partnering up to make a hostile bid for another strategic. this is unprecedented. >> you have to find the right partner and valeant is that partner. it is not like teaming up with pmg or exxon, he is a former mckinsey reporter who was taken from goldman sachs. and it a month ago, erik said that with the ceo of valeant, and acquisitions are their style. listen to this. >> we have done our research on development and total and for the last decade or so this has not been positive for the industry. so we make a much better use of our capital -- buying products that are approved by companies that have approved products, and grow that way. >> you know, drew, this is a good opportunity to bring you win. you cover the drug industry. balanced approach to intellectual property is totally different than anyone else in the industry. that is what they are alluding to, that they

has beens what ackman calling for months.ow real is it that we are going to get an outcome that ackman wants to hear? if you are the fbi, how does it look it at the end you say there is nothing there? >> i do not think the justice department will be concerned about how it looks at the end of this. is they are probably treading carefully. they do not want to be seen as doing the ending of an activist investor. it is quite possible this investigation has been going on for some time and they have been quiet. >> whether you have firsthand knowledge or not, do you buy that herbalife said they had no idea that the government was looking into them? >> it is hard to know whether they had no idea. it may be true that they were never contacted directly by the at the eye or the justice or the justicebi department. there have been other regulators looking into this already. it is possible the government has been getting information from them and said of reaching out directly to herbalife. >> what about bill ackman's rol e? without him, w

bill ackman on set with us.%. >> right. >> if he went over 10, he would know we did it. >> yeah. he started accumulating. started accumulating really fast. that's the point from which they are calculating the high premium. it's on top of $116.63. day before he crashed the 5% threshold. i did a quick back of the envelope on what this represents. based on valeant, this represents a 16% premium to where allergan closed. so getting to $165.33 for this offer. getting you to about $49 billion in this deal. so 16% premium is not as high as we have seen in the deals in the past. interesting valeant has gone after big companies. they came in as a white knight. looking at this statement they just put out, they printed a later they sent to david piatt. they had been going after allergan 18 months. >> the way they structured the deal is to convince the allergan shareholders is we will share with you all the costs of the deal. r&d will be quite significant. >> how did that work i wonder? did anyone else know that valeant was

separately "the wall street ackman reports bills and carl icahn have made peace.evine "bloomberg view," had a superb essay on herbalife, particularly the cash flow. you worldwide on bloomberg radio and television, simply, new york city, could they be the next detroit? was born thech year fdr became president. he has seen the boom, decide a of bus and rejuvenation of his new york city. truly a primal scream for new york and other cities to get there acts together now and not become detroit. in the larger picture here this is about american fiscal policy. what are we doing wrong? doing what is wrong -- the solution, the bankruptcy in change in the a long that new york city has to budget in accordance with generally accepted accounting principles. never hadrk city has a fiscal crisis since then and nor is it likely to. there will be debates about how much taxes and how much ill never facewe w the kind of problem the 40 -- detroit faces, the inability to pay their debts. >> within the hour -- i want to get it out of the way -- a principal owner of the company, i belie

-minute conversation last week, icahn and ackman forgiving each other. apparently ackman says i want to forgive you, icahn calls him back, says it's a blessing to forgive. >> he called him up and says i want to forgive you. not i'm sorry. i want to forgive you for being a jerk. >> everybody is in a jerk in this. everyone is calling the other dishonest. >> ackman told you what he did was called him up and said -- >> i'm reading right here. it says -- >> we do did a re-enactment. i'm calling to forgive carl, he says, to carl's assist and the. who might be his wife. and then -- >> don't go there again. >> he calls back and says it is a blessing to forgive. i forgive you. you're sick. i don't want to kiss and make up right now. >> it's not surprising. it's all business. anyone who has seen g1 or g2 knows it happens this way. they tried to bump off someone and went to his son. it's business, sonny. business. >> if you look at the godfather, what happened to his brother out on the lake. >> he betrayed them. >> can we talk about, how is it possible -- >> listen

bill ackman has an event on friday. also, the investigations are ongoing.many shares they buyback in the future. ,> we have these investigations plus this documentary that you mentioned. what would be the impact of this documentary on, say, law enforcement? >> it is hard to say. i am sure it will be entertaining. they will be bringing some employees in the did not fare so well, finding out they had a tough time starting their own business. the key year is that the critics are going to have to prove, at some point, that new members were misled into believing that it is easy to run the business and two, that the company is highly reliant, mostly reliant, on new member revenues to keep sales going. those are high burdens to prove. >> fair enough. ken, thank you for the perspective on herbalife. coming up, bank of america makes a big blunder. the second-largest u.s. lender had to scrap its capital return plan after inflation. coming up next. ♪ >> bank of america has scrap its capital return plan. the second-largest u.s. lander -- u.s. lenders scrambling to resu

also, bill ackman backed valley and pharmaceutical. going after allergan.tlined his intentions on bloomberg tv's "market makers." >> we are saying that the combined business is a much better business than either business separated. we have committed a large amount of capital to this entity. we have committed to a select stock in the venture. we have a contractual requirement to own it for a year. we intend to own it longer than that. we are a big believer in not just of this transaction and what the company becomes, but we are a big believer what happens when deal two and three and four happen from here. 102, 103, 104. >> bill ackman of pershing square capital with some insight into the evolving landscape of the pharmaceutical industry. somebody who has worked at novartis, merck, and bausch & lomb, dr. flemming omskov is the chief executive of the dublin-based shire pharmaceuticals. thank you very much for being here. let's start off talking about the mergers and acquisitions and asset swaps and sales we have seen so far this week. does this indicate to you

ackman's began building its stake in allergan in february. valeant says it will finalize and announce its proposal soon. the board will evaluate any offer but advises shareholders not to do anything right now. you can see valeant and shares of allergan higher in today's trade. >>> astrazeneca, their shares are soaring in london on reports of an informal takeover offer from american rival pfizer. cnbc understands that pfizer is mulling an offer which values astrazeneca at more than $100 billion. a huge deal. a separate report says that astra has hired morgan stanley and goldman sachs to advise on the potential takeover bid. then you also have the swiss pharmaceutical company novartis unveiling big changes to its portfolio because it's going to be acquiring the oncology division of glaxo smithkline for $14.5 billion. but it's also selling glaxo smithkline its vaccine unit for $5.25 billion. in a different deal, novartis is selling its animal health division to eli lilly for $5.4 billion. got that? there's a lot going on. cnbc's katherine boyle

for ackman, making up for this herbal life snaff .y ended up locked in with carl ai kahn and others. >> -- icahn. >> this is a hostile takeover. the two don't necessarily or normally fit together. >> well, the activist generally wants a company to get bought. he has taken out that step. yes, this is a bit new. new to see an act vibs. typically you would think of activists in the corporate world being almost in opposition. vator as ckman, ino always. >> if you enjoy 3-d films, check out what could be the next frontier for movies. 4-d. the technology bringsfects like moving chairs, smoke and wind to theater goers. ut will audiences like it? john erlichman went to get a taste for himself. >> welcome o the movie theater of the future. if you thought 3-d was cool, try adding moving chairs. bubbles, water, strobe lights, a feet tickler and smoke. > let's do it. >> shaking. >> exactly. > the company behind this 4-dx olled out chains and now it is live in downtown los angeles retro fitting one of its theaters which can cost $700,000. rb to be

bill ackman said i thought i had a leak. that was the problem. he said it was bigger. they knew what i was trying to do in the moment. >> here is what is important, it is a millisecond. it is not hours later. they get that information seconds before the buying comes in. it is not seconds. the difference between the me,et the investors, you, the guy with a 401(k), bill ackman is seeing, the speed of that market and the speed of the high-frequency traders is a couple of milliseconds. from thenough time computer point of view. one of the reasons the world has organized itself this way is this echo system has sprung up around traders making these profits. their -- have a hard time getting their mind around how a computer perceives time. thoseow a couple of seconds is for computer. how much can be done in that time. so it seems like everything is instantaneous to the naked eye. when you are on your account buying stock, seems like you got it right away. that is not what happens. , the rightwas sold to execute your order was sold by your broker so they could exploit it. in t

conover adds that when activists such as bill ackman get involved in companies... investors start to see more potential. chuck coppola takes it from here with another big pharma deal. chuck coppola takes it from here with another big pharma deal. bill... big pharma works together, separately. stocks moved yesterday on what's being called a major 3-part transaction in the drug industry. glaxosmith kline is selling its cancer products business to novartis for the price tag of 14 and a half billion dollars. novartis will turn over its animal health division to u.s. firm eli lilly for 5 billion dollars. and glaxo will buy the vaccine division from novartis. shares of glaxo and novartis made advancements during the session ... eli lilly dropped 1%.the deals are expected to be complete in the first half of 20-15. another quarter of disappointing results for mcdonald's. fir the first 3 months of the year it reported a sales decline of 1.7%. the world's largest restaurant chain has been struggling for more than a year to introduce new menu items while its rivals did that a

on monday ackman's pershing square capital management and valeant (val-ee-ant) pharmaceuticals sealed a deal to buy allergan for $46 billion dollars. the stock surged 15 percent after the announcement.ackman said in an interview with c-n-b-c that he did not violate securities law in his deal to buy allergan.he says legally, he is allowed to trade on inside information as long as the source did not breach confidentiality rules. tomorrow marks a new day for nokia, when microsoft's acquisition of the company's device and services business becomes official. the popularity of apple and samsung devices has delivered a blow to nokia's bottom line.however, analysts expect teaming with microsoft represents a fresh start. meantime... i-b-m attempts to take the lead in the chip market. it has released it's new chip technology called power eight. ibm partnered with google for the innovation. it says the chips are speedy, and able to handle more data. watch out netflix, amazon is comming on strong. starting in may -- if you subscribe to amazon prime you'll be able to get h-b-o shows like older fav