albertson's was privately held and rite aid shares were down 11.5% to $1.54.a coombs has more. >> rite aid and albertson's break up came down to money. they felt the $25 billion deal would leave them with too little of the combined fir if the merger were completed. shareholder advisory firms came t the same conclusion. albertson's saids not willing to change the terms of the offer so the two firms agreed to call off the deal with no break-up fee. albertson's ownedri pvate equity firm who had looked to bring the grocery chain public saw the deal with rite aid as w a to leverage its stores with health care. now some s analysts investors may not be of interest in an ipo. rite aid and albertson's have both looked mergers to be able to better compete in a tough retail environment and a ne standafirm, their faiths are unclear. rite aid's ceo said in they' comp announcement that we believed in the merit of the combination of alrtson's, we have heard our stockholders and are committed to moving forward as a stand alone company, but the pharmac chain now faces a proble

but if anything it was worth even less to albertsons.th sides agreed to call off the deal the response rite aid stock has been oh bl oblitera obliterated. so let's recap after years of maneuvering, walgreens gets a bunch of extra stores it doesn't really necessarily need rite aid seems to be running itself into the ground with no interested buyers in sight that's one reason i'm such a big fan of cvs it's nice when your competitors sabotage themselves. cvs is the perfect drug store chain for this moment. they have tremendous scale they have nearly 10,000 stores about like walgreen, cvs is the most vertically player in the industry they have their own pharmacy benefit management, the old care market, like that deal which helps save money on prescription drugs. going forward they'll do better when they finish buying aetna, the huge health organization which should happen in the next couple of months aetna insure morse than 44 million people the combined company will have enormous clout cvs will provide, in and fill your prescriptions there

anticipated twenty four billion dollar wedding is off between drugstore chain rite aid and albertsons grocery stores and they are definitely some bad feelings in the aftermath rite aid leadership reportedly soured on the proposed acquisition of albertson's which we first reported back in february under pressure from stockholders the cancellation announced by both corporations and on wednesday mooted a vote scheduled for today and right its stock fell as much as ten percent during today's trading rite aid stock holders blocked at the proposed merger formula for trading out their shares likely influenced by negative him put from investment advisory consultants and albertsons stood firm on their terms leading to the mutual council lation the way forward is unclear for both companies as both the drugstore and the grocery sectors are in transition with big players from other sectors crowding in the field in a rush to develop new delivery technologies. and meanwhile the chief executive officer of bright its biggest rival that c.v.s. has plunged into the brewing debate about drug prices more

anticipated twenty four billion dollar wedding is off between drugstore chain rite aid and albertsons grocery stores and they are definitely some bad feelings in the aftermath rite aid leadership reportedly soured on the proposed acquisition of albertson's which we first reported back in february under pressure from stockholders the cancellation announced by both corporations and on wednesday mooted a vote scheduled for today and right its stock fell as much as ten percent during today's trading rite aid stock holders blocked at the proposed merger formula for trading out their shares likely influenced by negative him put from investment advisory consultants and albertsons stood firm on their terms leading to the mutual council lation the way forward is unclear for both companies as both the drugstore and the grocery sectors are in transition with big players from other sectors crowding in the field in a rush to develop new delivery technologies. and meanwhile the chief executive officer of bright its biggest rival that c.v.s. has plunged into the brewing debate about drug prices more

and be able to have a bigger footprint with albertsons.ves them something stronger as they try to spin that out as an ipo. it makes it unsure for both in terms of their path. >> do i understand correctly in terms of the chronology, maybe when the deal was proposed the pbms were not quite as under intense pressure at regulatory -- >> right. this is more about the cash, people felt they didn't give them as much cash. the interesting things on the pbm is the two biggest yesterday came out and said, hey, we are not collecting as much of those rebates, those confidential discounts that they get from drug makers, express scripts saying we only get 400 million in revenue from that and you had yesterday cvs say we now only get 300 million revenue, that's only 3% of our revenue, we're giving back 98% of those rebates to our clients and telling them that that should give the rebate a point of sale to people still in the high deductible phase so they are trying to diffuse and get out ahead of that issue. >> sounds like you're bolstering carl's case.

albertson's merger with rite aid. th . >> this one not so act christ-- abandoning their deal, the shareholder advisory firms also came out against it last month albertson's privately held by server's capital said it was not really able to boost it's ff but rite aid chairman and ceo john stanley defended the deal in a letter to shareholders saying while we believed in the merits of the combination with albertson albertson's, we have heard from our stockholders and are moving forward as a company rite aid has a much smaller store count. they can now sell off benefit rx you know those controversial price discounts. cvs and express scripts says they're passing on 98% of rebates to clients and rebates account for just about 3% of its revenues and express scripts revenues only about for about 4% of top line this comes as david mentioned, carl icahn suggesting an objection to the cigna deal. both cigna and express scripts top holders, is dodge and cox stock fund and that fund would not comment on their support for the deal d

albertsons was called off.d jonathan palmer, the health-care analyst for bloomberg intelligence. what happens now to write it because it has gone through two failed mergers, first with walgreens, now with albertsons. it is a shell of its former self. can it survive? jonathan: they have struck out twice. first with walgreens, then last night with albertsons. the question remains, and a stand-alone pharmacy company exist out there. as you said, they are half the size they were a couple years ago with about 2500 stores. cbs's up there with 10,000 stores to walgreens is there with 12,000 stores. -- 5000mart has five pharmacies. right eight is big in california and the west coast, big on the east coast. not a lot in between. they are not a national pharmacy. it remains to be seen if they can exist in this new transformational environment. julie: why is there a smaller size such a disadvantage for the company? jonathan:jonathan: the way pharmacies work is being part of a network. somebody has a national network that

albertsons and rite aid calling off their merger. >>> one summer retreat made history. the federal aviation administration made it the first approved drone flight where the drone venture out of sight. >> anything refreshing is nice. air conditioning. anywhere you can find with ac. look at how gray it is. it is not cloud cover. what you are seeing of course are the clouds through the golden gate bridge. yucky smoky skies and that is what we are dealing with. temperatures, warm, 81 in concord, and santa rosa 75. you can see a lot of the haze is still hanging right there and that is what you will be running into and that is why air conditions will be great. -- air conditioning will be great. and we have barely a9 miles per. that's about it. calm in san jose and livermore and allowing the smoke to settle down low. no wind in nevada or napa. we are waiting for an onshore breeze that will arrive late for on today. some of the models showing the west winds will pick up but until they do it is hot and hazy. and that is what is creating the still air. this low when it is closer,

trying to albertson's called off their $22 billion merger plan. >> the s&p 500 being slightly lower yesterday. the s&p in the not back both half a percent below a record. >> stock market futures slightly to the upside to the dogs haven't come s&p up to, nasdaq up four. >> the u.s. and russia with the tensions that could affect european companies. red arrows in london, paris and germany. >> stocks in china rebound as investors of health care and technology stocks. the shanghai composite of 2%. the hong kong hang seng up 1%. >> chris collins arrested on charges of insider trading, but he vowed to fight back and to seek reelection. "fbn:am" starts right now. cheryl: 5:01 a.m. in new york papers day, august 9th. m. cheryl casone. lauren: everybody appeared on lauren simonetti print the securities and exchange committee reportedly questioned tesla following the stunning announcement that you may take the company private. "wall street journal" reporting when he treated he has secured funding for what would be the largest buyout ever. cheryl: former sec chairman harvey pitt had to say on coast-to-co

. >> your individual stock stories now include rite-aid shares are lower after albertson's terminatedheir merger deal. last month proxy advisory firm iss recommended that rite-aid shareholders vote against the merger as it wouldn't give them fair ownership of the combined company. >>> dun & bradstreet struck a deal to go private the firm will be bought for 5 8 $5.38 billion in cash. if you own dun & bradstreet, that's about an 18% premium to wednesday's closing price. you will make some money today >>> and tronc is considering selling it's newspaper business to an unnamed equity firm. the offer would value the business at up to 7$700 million or $19 to $20 a share. tronc shares off about 0.8%. 20 bucks a share probably sounds good at tronc shareholders >>> the united states set to impose new sanctions on russia this comes as the united states accused russia of violating international law. those sanctions are expected to go into effect around august 22nd most other sanctions have already kicked in against iran with oil set to go into place in november let's bring in daniel tannenbaum fr

albertsons says it was not willing to boost its offer the big question is now what it has hoped this deal would help bring the pharmacies into the grocery train would boost the process of bringing in albertsons again in an ipo they said we have heard our stock holders are committed to moving forward as a stand alone company. that's a big challenge after two failed deals rite-aid's footprint is small. and the competition is getting more intense with cvs and express grips looking at big mergers with insures >>> here's the other deal that fell apart, tribune media terminating. it said sinclair engaged in unnecessarily aggressive and protracted negotiations with the department of justice and the federal communications commission over regulatory requirements and proposed aggressive party structures or regulatory sales that were rejected outright or posed a risk of rejection or delay >> let's bring in the former chief of staff and former legal advisor at the fcc thanks very much for joining us. before we get onto what could happen to these assets after the fact, was it slightly odd this de

it was sold at albertsons, safe way, pac n save and bonds stores. anyone who bought these products should throw them away or bring them back for a full refund. >>> jetblue is changing checking bags and canceling tickets. they're not messing around. passengers who buy the tickets will pay an extra five bucks to academic a bag. $30 for the first bag and $40 for your second. for all but the highest fare cost the fee for changing or canceling a ticket will rise from 150 to $200. the legislature is struggling to come wake up a work-aound for homeowners getting nailed by new federal income tax rules. they cap a federal write-off on state income and property tax together. this is seen by many as a swipe at states with high property values and higher state taxes. and overwhelmingly in the last election. two peoples allow taxpayers to contribute to nonprofits or the state's college tuition fund in exchange for 75 to 80% tax credit. however, nothing's been done and time is running out. it's doubtful they will get anything done. >> okay. >> what will be a huge

they come in ten-pound packages and are sold at albertson's, safeway, pack n save and vons stores. return them for a full refund. so check your refrigerator or freezer. >>> and pfizer has recalled a specific flavor of children's advil. it is suspending the bubble gum flavor. pfizer said the instructions are marked in milliliters but the dosage cup is marked in teaspoons you. return it for a refund. to learn more head to our website, abc7news.com. >>> all right. on to the weather forecast as we start another week. >> all right. the air is getting cleaner, and that's good news, sandhya. . that is indeed. and we can breathe a little easier as a result, dan and kristen. i want to show you time lapse from our mount tamalpais camera as we have a very deep marine layer in place. it was rushing back in over the bay from the coast. and if you look carefully here, there was still a little bit of a sign of some smoke from the wildfire, especially in the north bay. now air quality has started to improve. and over the next two days, you're going to notice much better air quality on wednesday it

. >>> the rite aid/albertsons merger is off.e pharmacy and grocer were unable to arrange a deal that appeal to contender. critics contend it gave albert sons the means to take the company public without asking shareholders. >>> do you want to work from home? this is your chance. the ecommerce giant is posting jobs for over 230 virtual or work-from-home positions. most are full-time in customer service, sales, or resources. in addition to working home they get medical and dental, a 401(k) company plan, stock, and discount on amazon products. >> you had me at work in your pajamas. >> right? sounds good to me. >> diane king hall at the new york stock exchange. thanks a lot, diane. >>> still ahead, coming home, family of a fallen korean war veteran finds some closure after nearly seven decades. it looks like jonathan on a date with his wife. ♪ la-di-la-di. entresto is a heart failure medicine that helps your heart... so you can keep on doing what you love. in the largest heart failure study ever, entresto was proven superior at help

just three daysr beite aid shareholders are set to vote on the company's proposed merger with the albertson'srocery cin. ri aid shares tell nearly 10% today to 1.66. >>> after the bell, zillow said it was buying a national mortgage lender. up until tnow, company has remained focused on providing listings and quotes. said the deal was mortgage lenders of america will allow it to create new partnership opportunities and potentially originate mortgages. c separately, tpany reported a rise in revenue. but the shares plunged in after hours trading. they ended the regular day up 1% to $59 even. ter the bell hertz said each of its divisions saw growth this car rental ping the company narrow its losses. evenue also inched higher and toppedimates. shares, though, were volatile in the extended sessions. they ended theegular day down 1.5% to $15.67. also out after the bell, weight watchers raised its full ye earnings outlook after improved margins. those results were overshadowed by weaker subscriber growth. shares were lowern after hours, but finished the day up i fr to >$92.21. pepsico's ceo is steppi

the meat in question was sold at safeway, albertson's, pack and save, and vaughn's stores in california. we told you about this yesterday morning. 12 tons of ground beef may b e.. the recalled meat was packed on august 16th. it has a use or freeze by date of september 5th. shoppers can return it. you'll get a full refund. a link to the full list of recalled product is on our website. abc7news.com. also on our abc 7 news app. >>> you're never more than seven minutes away from my accuweather forecast. we'll start with the temperatures in san francisco. very narrow margin from about 55 in the sunset to the financial and the ferry building at 58 degrees. just about everywhere dealing with mist and drizzle this morning. in san francisco, some of that is bleeding across to the east onto the bay bridge and into the east bay hills this morning. expect to use the windshield wipers and find damp spots on the road. we'll go caution for the morning commute. ferry ride, a lilt mist hanging in the air as you ride the ferry. and that will continue up through about 7:30, maybe 8:00. mass transit, thoug

rite aid and albertsons terminating the barge deal. the harlem grub trotters. more of this incredible video later this hour. janine to break it down, christina with us this morning with the editorial page editor james truman and former arkansas governor republican president mike huckabee. great to see everybody this morning. governor, great to see you. congratulations on the book. two centuries of booms, busts and bailout. just published a couple days ago. >> across the too big to fail bank. he brought the idea to me and the lesson here is really strong , healthy, vibrant institution. so start to build up the government at times when it was a completely free institution. we get this safety net and sell it to real lesson about the safety net. maria: in the an important book to tell us exactly what happened. borrowed time as the name. congrats. we'll talk a lot about your new book. top story right now is wall street and washington telling tesla show me the money. the securities and exchange commission investigating elon musk street yesterday was truthful. conside

drinks at a mexican restaurant, a trip to albertson's plus $100 cash back.bief will be in court tomorrow. we are waiting to find out if the white house will have a daily press conference. >> thank you very much. today show is live with why experts say it is good for business. one they say can help bring in new employees. >> yeah. you get this. >> maybe so. >> it would be tough for us to work from home. >> yes. >> face time. we could do that. >> you don't need to see us in the morning. >> i'm not like that in the morning. >> it looks great today. we are going to have great weather. cooler temperatures around the bay area. if you're planning to head out of town here is a live look seeing the planes arriving and looking good. visibility has been fairly low. it has caused problems the past coupleov couple of days. we are starting the first day of school today. temperatures in the low 60s. mid-70s by early afternoon. great weather by the start of the school year. it will be in the low 60s and cloudy. we will get more sunshine as we go through the day. we will be

calling, and calling, and calling, and it didn't matter who i called, walgreens, cvs, tom thumb, albertson, nobody had it. >> reporter: epipens help treat allergic reactions to things like insect stings, medications, and food. the end of the summer is often a peak season for refills, but according to the fda, shortages began in may. in a statement, myland, the company that sells epipens, says they "continue to experience interruptions" and supplies vary from pharmacy to pharmacy, but that they're "actively exploring several options that would help stabilize the supply." after calling several pharmacies, megan brunson finally found one for her 11-year-old son, and offers this warning. >> be on the hunt. it's going to take some time. >> reporter: tom, just last week, the fda approved the first generic epipen. that's good news for availability, but also for price. without insurance, epipens could cost you several hundred dollars. tom? >> janai, thank you. >>> up next, the wild chase. a driver trying to escape police on a busy freeway, by car, and then on foot. >>> plus, the big box office new

twitter is how much the backbone of driving sales at albertsons and walmart.ill say that maybe the with th oftention -- wid attention on twitter is not growing to the stock market's wants and needs, but the ways to maneuver in it and it's at three to over the last four years i have been critical and not excited about twitter question,but i, no have seen over the last six to 12 months seen a resurgence different from the trump effect in just how much attention is in the platform. when you have attention, you have the ultimate currency. it will be interesting to see what they do with their own tt. they were flirting with that space a year ago. i don't know how earnings are done or how much the street values things, but depth and maybe not width is not emerging. emily: in 2007 just before the financial crisis, one of them was a tech company, which is microsoft. is the market putting too many eggs in the tech basket? gary: i think about things in such long-term, like the thought of me understanding the short-term economics of 90 day terms and numbers that most of

the deal with albertsons. the pharmacy business is going under a huge transformation. and the tribune sinclair -- sinclair is much lower theory had -- sinclair is much lower. let'sforget earnings -- look at earnings. priceline rebranded itself and has missed on the third-quarter forecast, which is supposed to be a good summer travel month. analysts are worried they will miss on the forecasts. wrapping it up, technologies of seagate up more than 7%. it is nearing its peak and they are citing concerns about the hard disk drive market. sherry: thank you. coming up, more of our discussion on the midterms. will president trump's policies help or hurt republicans into the critical november elections? we will discuss. this is bloomberg. ♪ this is bloomberg markets: balance of power. i am shery ahn. david: i am david westin. mark crumpton has first word news. mark: paul manafort's trial resuming today in virginia. they will offer witnesses for two more days and focus on the nine bank fraud counts against the former chairman. accused of securing more than $20 million in loans i

trying to albertson's called off their $22 billion merger plan. >> the s&p 500 being slightly lower yesterdaye s&p in the not back both half a percent below a record. >> stock market

a trip to albertson's for paper towels, apparently, and $100 cash back on the campaign card. sea world tickets for his family, billed to the campaign as an educational tour. paying off an overdue dentist bill and overdue water bill as well. this accounts for just 18 days in charges. i'm not picking and choosing here. i just picked a random page. the indictment is full of these. now, you may know duncan is one of the people who said other people were corrupt. >> my colleagues are right to introduce articles of impeachment against deputy attorney general rod rosenstein. the department of justice is corrupt, answerable to no one, and uses the law to extort the american people and affect political change. >> i was showing you those credit card charges made to his campaign. prosecutors also allege they illegally spent campaign money on personal expenses and then claimed that they were spending it on charities. one e-mail between he and his wife, he says he wants to buy hawaii shorts, which presumably are shorts to take with him to hawaii on a trip. she suggests that he buy them at

rite aid and albertson, calling it quits ending a planned $24 billion merger due to investor backlash of what was to be the eve of a shareholder vote on this retail union. the pharmacy chain and privately held investor unable to convince this deal was necessary to stave of competition from amazon rite aid warning earlier in the week of coming losses to the tune of $80 million this year due to weaker bargaining positions with drugmakers but remember cvs just came out with great news selling more prescription drugs so rite aid shares the stock-specific story here already down 22% since february extending those losses today another 11.75% at this hour and charlie gasparino of course brought you the news yesterday that sinclair and tribune were headed for splits ville so tribune owner of the chicago tribune not only calling off this agreement with sinclair but suing sinclair, alleging that the company did not do enough to help get the $3.9 billion deal approved regulators. the federal communications commission had announced its opposition to the acquisition last month due to concerns over

details this morning about a ground beef recall, they say the meat in question was sold at safeway, albertson'sres in california. >> we told you about this yesterday during the morning show. 12 tons of ground beef may be contaminated with e. coli. the recalled meat was packed on august 16th and has a use or freeze by date of september 5th. shoppers can return it for a full refund. if you want to check out the link to the full list of recalled products, it's on our website, abc7news.com. and the app. >> the attorney for one of the ghostship fire suspects accuses the judge who reflected a plea deal of a conflict of interest. derrick almena and max harris agreed to plead no contest to 36 counts of involuntary manslaughter. that's in exchange for prison sentences that many victims' families said were too lenient. the judge rejected the deal saying almena showed no remorse. almena's attorney now wants the agreement restored because the judge failed to disclose he had lost a child. the attorney says that made him biased in favor of the families. >>> a south bay football program has adopted a unique i

new details about a ground beef recall wrrg they say the meat in question was sold at safeway, albertson's andt here in california. we first told you about the recall yesterday morning. 12 tons of ground beef may be contaminated with e. coli. the recalled meat was packed on august 16th, has a use or freeze by date of september 5th. shoppers can return it for a full refund and a link to the recalled items are on our website, abc7news.com, and our abc 7 news app. >> a look at google's newest phones is coming soon. bloomberg reports the pixel 3 and pixel 3 xl smartphones will be unveiled on october 9th. people familiar with the plan say there will be a media event this time in new york. previous pixel events were hosted in san francisco. >>> are you looking to upgrade your wardrobe? because dad shoes are apparently really in right now. >> go nice with the dad bod. corg to google, searches for sneakers and dad shoes jumped more than 600% this summer. we have reached the and by the way, they look like they should be cheap, they're often not. high-end dad shoes can cost more than $1,000. >> we s

it stuns me how much twitter is the backbone of driving sales at albertsons and walmart.will say that maybe the width of attention on twitter is not growing to a stock market's wants and needs, but the depth of attention in the platform, and the ways to maneuver in it, and its ad products, over the last three to four years i have been quite critical and not excited about twitter publicly, but i, no question, have seen over the last six to 12 months a resurgence difference than let's say the trump effect in just how much attention is in the platform. and when you have attention, you have the ultimate currency. to me, it will be interesting to see what they do with their ott. i think they should play in that space. they were flirting with that a year or two ago. again, i don't know how earnings are done or how much the street values things, but i will say depth and maybe not width is emerging on twitter. emily: the top five companies by market cap are facebook, amazon, google, microsoft. in 2007, just before the financial crisis, one of them was a tech company, which is mic

albertson's is private.'s get to the stock of the week, that is, yes, tesla, elon musk tweeting he wants to go private, now sec is taking a closer look at those tweets, joining us fox news contributor john layfield, john, you have been a fan for elon musk for a long, long time l you defend him now? >> if this is true, absolutely. what he did with the tweet while unorthodox there's nothing wrong with this, you can disseminate information on social media if you disclose that you will disseminate that information. tesla said what mr. musk, that part is fine, it's unorthodox but the part is fine. the biggest thing is secured fund pg, i don't know why the sec is taking so long. either he has documentation that he has secured funding, if he does, the biggest buyout in history, if he doesn't an sec violation. stuart: why doesn't apple make a bid, they would like a car company, wouldn't they? >> bingo, absolutely. that to me is the natural play. no banks according to reporters have been in talks with mr. musk about

looking at rite aid down more than 10% today after the merger is scrapped with privately-held albertsonse ceo believed in merits of the combination with the two companies but heard views expressed by stockholders. they're committed to moving forward with their own strategic plan as a stand-alone. shareholders were fighting this plan. complaining that insiders would get payouts that also didn't meet their needs. they took a look overall, big picture at this group, these drugs overall. don't forget it was on july 9th president trump tweeted against the group, pfizer, others should be ashamed they raised drug prices for no reason. pfizer pulled back. look how the group is faring from one month ago. cvs and walgreens are higher. rate aid down about 7 1/2% during that time. back to you, connell. connell: nicole, good to see is. nicole petallides at new york stock exchange. to charlie gasparino with a story he has been way ahead of. tribune calling off the $3.9 billion media merger with sinclair. you have been ahead of it. >> when nicole was speaking there was tape of networks from trump, did

rite aid and albertsons have agreed to stop a merger that would have reshaped their industries in theroxy advisors. it says right age shareholders would not have gotten a fair share in the combined company. deutsche telekom forecasting higher earnings posted by growth in the u.s.. is the marketom leader in germany and elsewhere in europe, where growth is hard to come by. a company facing pressure from activist investors, and last month a ceo resigning under fire. krupp is being turned around. >> we don't like protectionism. we like free trade. this is only good for business in the long run and for the country to develop. ,rade wars never helped anyone but we have to deal with the issues as we are. we have a clear plan forward. i hope these uncertainties will go away. for all involved parties, it can only be good to have a solid and stable environment. >> that is your bloomberg business flash. francine: thank you. first-half profits beat estimates and higher profit forecast for the rest of the year, now nigel wilson the chief executive joins us. a look at to have what your industry can