sharings of allergan have soared since early may.ose in the coming weeks. last week billionaire investor carl icahn jumped in on the name saying he's confident in the ceo's ability to increase value for allergan shareholders. that ceo, brent saunders, joins us now on cnbc. brent, always nice to have you. thanks for taking a bit of time. since i mentioned icahn there, why don't we just start there. have you had a chance to talk to mr. icahn and find out what it is he thinks about the company, or what it is he wants? >> i did. i got a chance to speak with him friday afternoon before he announced the -- his investment. i think it was the holiday weekend, so tuesday morning. and we had a very nice conversation. obviously we know each other from the days at forrest labs, he was a very constructive investor back then. and he voiced his support for our strategy, he voiced his support for our pipeline, and i asked him did he have something he wanted us to do differently. and he said, no, that he was confident in our strategy and looked forwa

it was bought way what is now allergan. -- that company was bought by what is now allergan.ourse has bet on a lot of big companies, whether it is apple or other names. he pushes for moves that he thinks will raise shareholder value. what does he have in store for allergan? >> i think we may have to wait and see. he put up this statement, very brief and he does take pains to , say that brett saunders is a great guy. these guys go way, way, way, way back. a bunch of years of icahn believing in this guy. take a look at apple for example. he took a stake in apple. said that he likes tim cook. he likes the company's management strategy. then he came in and demanded they start using some of their cash to repay back to stakeholders. so carl icahn being in and saying he supports the manager -- management -- icahn being in does not mean he is not going to want something or have a role that he thinks he can play in the company's future, especially since allergan is at a pivotal point right now. >> we should not assume it is a friendly situation. >> it may be friendly with some tension

allergan. it is down.watching it knows there is something that happened since the start of this year. tell us about that. kevin: the pfizer-allergan deal got called off. back in may, at may 10, they announced a $4 billion high back. they also have another deal in about $40 billion. they have a great pipeline. what is interesting is in may, the health-care sector was actually the second best-performing sector, and allergan is one of them, so even after this giant run-up since may 10, what you put to do is sell the $245 before they announced earnings, and you can collect because of volatility is still elevated. you can collect about 3.5% and lower your cost. anchor: we have got a little more time, so i want to go to the rate hike. a lot of people are thinking it may happen in july. what are your thoughts there? hasn: i think the fed painted themselves into a corner. they have come out to say the economy is strong enough, so if they do not do it, that will send shockwaves through the system, because what does

but allergan is in a very strong position.e in the final stages of a, tong our deal with tev sell for about $40.5 billion. and when that is closed, the proceeds will be spent. about $10 billion on a stock repurchase program, about $10 billion on debt repayment. and that will leave us with cash billion tout $20 invest for growth. and we will be looking at buying intellectual property, r&d assets and of course, m&a. looking at more stronger deals, that really support our therapeutic area leadership and innovation. >> you are in shanghai. i have to ask about the pharmaceutical industry in china right now. a few years ago you really wanted to expand in the country. has that changed now in your plans, given the concerns about the slowdown in china? we also have the state campaign drugally bring down the prices that really hit pharma companies pretty hard. yeah, we are very committed to the chinese market. i am thrilled to be here in shanghai meeting with the chinese leadership and of course our colleagues. i will be visiting with c

vonnie: in april, allergan and pfizer and it plans to merge.amed on washington's crackdown on so-called corporate inversions. mark: monsanto posted worse than expected fiscal first quarter earnings. it has been in discussion with others seeking alternatives. one center has been facing progressive funding of -- monsanto has been facing aggressive cutting prices by competitors and falling prices for herbicide. mitsubishi is resuming sales for cars after an inflated mileage controversy. the automaker offered to compensate each fire with $960 to make up for the extra gas. orders start accepting for its many model starting friday. the ecb she says it has been not been -- mitsubishi says he has not been given any government penalties for cheating on the mileage. bc is boosting its presence in the united states, agreeing to buy private bank or of chicago. privatebancorp is a commercial bank with almost $18 billion in assets. to deal will allow cibc offer tunisian customers u.s. banking services. kellogg is opening a cafÉ in new york as it pushes to re

. >>> one billionaire is bullish on the pharmaceutical giant allergan. carl icahn disclosed he has acquired a "large position" in the maker of botox. in a statement on his website, icahn showed support for the company's ceo. allergan says it does not believe the large stake was made to influence the actions of the company's management. shares flat on the news at 235.93. >>> and quarterly sales rose in all four divisions at the medical device maker medtronic thanks in part to an increase in surgeries performed. the results were ahead of analyst targets as were profits. shares fell on a cautious outlook for full-year earnings. medtronic down nearly 1.5% at 80.48. >>> fidelity lighten its position in chipotle. shares of the burrito chain about 40% since the end of september as it continues to deal with fallout from multiple outbreaks of foodborne illnesses last year. today shares didn't react much ended down fractionally to 441.96. >>> office depot is buying back up to $100 million of its shares. earlier this month regulators blocked the proposed merger bet

i will say that that's one of the reasons i bought allergan. i saw allergan fall apart.de a great deal of money on forest because he came in there -- i was instrumental, and i am proud to say, to have him become the ceo. he got that thing sold, did great. so activist went up. i figured, what do i want to keep it for. i sold it. i made a big profit, but we sold it and it kept going higher. i said, if it comes down i'll look at it because brent is a really good manager. it fell apart because pfizer -- completely wrongly it was tinged with the brush of valeant. it was a great -- it's simple. you look at allergan. the thing got way down to close to the 200 level. and we bought a lot of stock. we just looked at the numbers. allergan has a great pipeline. a great pipeline. and it also has a deal with tever. it's a risk if it doesn't go through. you talk about the anti-trust laws and all that, it's pretty much a fait accompli, i hope. even if it didn't go through, which i think it will, you look at the numbers. allergan is just simply undervalued with a good -- with a very good

-- for allergan?e put out a statement and he does take pains to say that brett saunders is a great guy. these guys ogo way back. a bunch of years of icahn believing in the sky. take a look at apple. he said he likes tim cook. then he came in and demanded they start using some of their cash to repay back to cash holders -- to stakeholders. mean heing in does not is not going to want something or have a role that he thinks he can play in the company's future, especially since allergan is at a pivotal point. >> we should not assume it is a from a situation. >> friendly with some tension is always a possibility here. i think there is a broad spectrum on how active carl icahn can be and could get in a situation like this, even when he supports the company. asia's biggest aircraft leasing firm native hong kong listing debut. shares of boc aviation trading 1% higher. now this ipo raised over $1 billion, making it asia's second-biggest share sale this year. this is been a project years in the making. because

because they have said they will shell out half $1 billion to buy 15 generic drugs from teva and allergan, who are trying to get antitrust approval for their own merger. vonnie: thank you. let's get a check on the first word news with mark crumpton. mark: when it came to fundraising, donald trump fell far behind hillary clinton last month. the likely republican presidential nominee raised a little more than $3 million for his campaign in may. in contrast, mrs. clinton took in more than $26 million. his campaign is grandly to put together a fundraising structure. florida governor rick scott says the florida government has denied his request to deny a state of emergency following a massacre in orlando. as a result, the u.s. government will not provide $5 million in federal funding to help pay for law enforcement response, medical care, and counseling services. the american bar association says supreme court nominee merrick garland is "well-qualified" for the nation's highest court. vermont democrat patrick leahy, the ranking member of the senate judiciary committee, says the aba rating mean

nejra: in april allergan and pfizer and it plans to merge.as overtaken france as the biggest buyer of cancer drugs in europe. researchers swedish european company -- countries spent $20 billion for cancer drugs. germany, france, italy, the u.k., and spain are the top five. hopes a vaccine for the zika virus can be developed. fullaccines gave mice protection against a brazilian strain of zika according to researchers in brazil. they say it would be difficult to estimate when a vaccine could become ready to use for people. that is your pharma focus on the business flash. francine: thank you so much. this is a picture for yen. it had some quite big movements as it is considered a haven. i want to show you my chart of the day. what are the odds of a 2016 fed hike? that went all the way down and in blue the dollar-yen spot rate. our guests are still here. when you look at this chart it seems that yen is taking all the brunt and there has been so much money going into it as a haven. that has been our view all along that the yen is going to bear the

jnj, cooper, alcon, allergan, they all want it.o you think valeant -- let's say you're a salesperson at valeant -- sorry, you aren't because you don't work there anymore. this is an amazing -- this is a dissection by american pharmaceutical companies against valeant. and i don't know about sallics, i don't know who comes in against them. >> the conference call, jim, began at 8:00. let me give you a couple headlines. thanks for not updating us on headlines here, but time will be our friend at valeant says joe papa. >> time is our friend. >> time is our friend. they will be in compliance with debt covenants throughout 2016, as we've just told you. the g.i. units perform below expectations as did dermatology of course. under performance in dermatology. and the key drug for when they acquired salix. they also say their liquidity position remains solid and on and on from there. >> that womens libido product did not work. >> that did not work at all. >> you remember this in the end is a drug company. it is not a company that makes things

david: allergan, tell us what you like elegant health care? -- allergan health care? botox,est known became well-known after the treasury department scuttled their deal with pfizer. you're looking at 20% less growth, 2017, 2018. 14 times forward earnings for that, $34 billion in cash in the next month or so in their deal to sell their generic business to teva. they are buying some growth with that money, a goodbye. david: are you concerned with risk??ory mr. ward: it's an ongoing headwind for pharma, the political talk about drug pricing. alix: howard, thank you. dan coats chief investment officer. he mentioned allergan, this week bloomberg is present in what we call focused on pharma, going deep on the global business of pharmaceuticals and biotechnology. they have a range of stories and analysis across everyone of bloomberg's platforms. more on pharma as well as bloomberg.com/pharma. coming up, we have more "." we are talking energy and paying attention to the markets. jonathan: all attention on the markets, a little bit of stability and a rebound in market with

we've seen the health-care care sector very active, but i wonder if pfizer and allergan have run thee with their transformative acquisition. they are getting blocked by regulators. to what extent do believe that the most they will be able to achieve are these incremental purchases? is not as big of an outlier as it was. they were very active and rolling up a lot of companies across the health care sector. i think that slowed a little bit. but health care remains the busiest sector. sectors wouldr you expect to see him in a pickup in? up quite aill pick lot. there has been a fair amount of restructuring. always have this moment when buyers and sellers don't converge on a single point of view during market dislocation. when you have a huge drop in oil prices and a significant rebound, it will take time before buyers and sellers start to see values similarly again. what can we expect going forward? is there anything that will loosen up some of these deals where companies have backed away from going overseas? >> there were 20-30 of them done in history. that's not a big thing. there are

and they show his presidential intellimouse allergan. he treats out i'm getting congratulations for cms. he's responding in a way that egomaniacal and consistent with his past behavior: the president, insinuating the president is guilty of treason and in cahoots with isis. this is clearly a man of independent anytime soon. also coming out and criticizing donald trump and how he has responded does not reflect the republican values. maria: and yet, this keeps happening. this is one of the first things donald trump brought a period >> is temperament is outstanding. he's angry and average when americans repeatedly slaughtered by a stomach terrorist. he's dispassionate calm when he's describing his method come as those method of dealing with this. a suspension of immigration of people who come from a hotbed of islamic terror worldwide. if you take a poll from not a week from now and ask people, i would guess an overwhelming majority of people would agree with that. it turns the gun ban goes, which hillary clinton if she were able to would rep

the ceo tells bloomberg allergan is looking at smaller scale deals that would comment its strategy ofng a leader in pharma. pfizer and it plans to merge, blamed on the crackdown on corporate inversions. david: people are leaving the firm in a sweeping overhaul of the banking division. roger naylor, chris murphy, matt cannon will all step down. this will be run by the remaining code heads. - co-heads. that is the bloomberg/update. vonnie: we are following stocks near session highs. ♪ ♪ vonnie: this is bloomberg markets. session,t the opening and since the brexit, a massive follow-up off and then a rally. on investors are more optimistic that the public leaders will step in a month -- among the global uncertainty. we have a guest now. julian, is it really bad, or is this delayed response because on the part of britain, they don't believe this will have a negative outcomes everyone says it will? >> friday and into monday, the markets are pricing in the worst-case outcome. the message of course -- what we are seeing because of politics in the u.k., there is this cooling-off time, perhaps

but what's happening with allergan right now. that's wonderful news about it.rs is just a total superstar. the fight that they put against valiant turned out to be smart and they are putting into the bucket of good pharma. similarly, the criticisms i've had -- i have deep criticisms. i think that companies main product is a complete joke. i think that their stock cannot rebound and must be put in the area of bad pharma. most important leak, the concept of a platform company is completely gone. so, where it is found in him here? they are not making more acquisitions. as for the sum of the parts, a they going to sell anything off? there are a lot of moving parts here and it's a more difficult call to make. if you want to have a trade, go make a trade, but there are a lot of stocks to invest in out there. down beforeiant is its earnings report tomorrow. andrew, thank you. we will be right back. this is "what'd you miss?" ♪ scarlet: "what'd you miss?" a republican victory could lead to a reversal of dodd frank. jeb hensarling is unveiling a replacement plan tomorro

. $500 billion about to buy 15 generic drugs from tivo and allergan, who are heading for their own merger. vonnie: let's get a check on the first word news. mark: u.s. attorney general loretta lynch is in orlando, order today more than a week after 49 people were killed and dozens injured during a terror attack at a nightclub. she met with victims and first responders, and afterwards, spoke to reporters. >> we are also offering emergency counseling resources to first responders to help them deal with the trauma that they, too, have experienced. in their bravery, they shouldered the dangers that are visited upon all of us, and they carry that weight long after the smoke has cleared. we will continue to make any and all resources available to them as this investigation unfolds. the attorney general said the justice department will provide florida when $1 million in emergency funds to help with response costs. the republican governor rick scott earlier complained washington had turned down his request for $5 million to help pay for the state response. allary clinton's search for running lane

i still like allergan. i think it's way undervalued. they can get a ton of cash, like $40 billion in transaction with teva. on the other side of the coin, i bought endo pharma. i have been in and out of it. right now, on adjusted earnings, looking at about 450 in earnings this year. that puts it less than four times multiple. lots of upside. there's some hair on it but look, i think the stock's dirt cheap and very much hated. >> pete? >> i look at two ways. i look at some big pharma names that are biotechs, bristol myers, for instance. when you look at why it trades the multiple it has, it's morphed into a biotech. outside of that, look at something like gilead. they have a few drugs they will be introducing. i think those will be very good late stage, keep an eye on that. >> i much prefer biotech. love biotech. gilead's a good one. they have to make an acquisition. amgen is steady. the stock could go to 60 or four, who knows. don't know when the fda comes out with their decision. >> large cap biotech names. amgen is a name i like. gile

we arespect to allergan, headquartered in dublin.our total sales is in the united kingdom. outside of currency, we see the immediate impact is minimal. we see a things like regulatory approvals and others go. that is a few years away. known as a deal guy. you also college of a man of operations as well. how does brexit influence how you move facilities in the u.k.? would you potentially move out of the region? i don't think so. we have our international headquarters. we have a fantastic team. we are committed to both marlo, .k., and our people there. there are no plans to change anything in the way we operate. hopefully, we can remain committed to our operation for the long-term. >> talk a little bit about m&a here. it has recently been dominated the headlines. this deal that failed because of a new rule brought on by the treasury. you said you were blindsided by what happened. as soon are deal ready as the sale is complete. you have a lighter balance sheet right now. you have more cash. how will you spend it? brent: yes, we were dis

whether specifically around taxes -- there was some specific tax registration in that pfizer -allergan. so that was blocked. in game consolidation, and these transactions make sense. reason, those transactions have regulatory overlap. regulators have pushed harder and with raiders scrutiny. -- greater scrutiny. it has made ceos and boards more reticent. jeff: do we have an environment look at deals and lawyers say strategically it will make sense but it will get locked -- blocked? is that going on now? aegg: it has been going on long time. antitrust lawyers are getting more conservative. the biggest risk is what will happen if the deal does not happen. baker hughes and halliburton is an example. it was in limbo a long time. for some, there was a break up fee, but in reality, some companies are out 12 to 18 months with a lot of uncertainty. alix: those companies then put in cost cutting measures. so you put off things you do to compete. scarlet: is that a sign the m&a cycle is topping out? it is not clear it is topping out, though it is less robust than last year. the factors of volatil

targeting the inversions with pfizer and allergan, there are not many examples of the companies that wanted to ask you about that, and any kind of pushback having inverted and moving your tax base overe seas? >> well, there are regulations that we are completely compliant with, and i want to draw yourt attention to the fact that the reason that we did the transaction is because of the operational benefits, and they are coming true in terms of the revenue that we have been able to preserve and the synergys that are creating value for overall company, and reaching more patients around the world, and sure, a tax inversion in the structure, because we felt that it was the most optimum structure, but the main focus at this stage is making sure that the operating business that we paid money for actually delivers the results that visits and as the regulations comes up, we are compliant with them, and the major benefit here by far is the operating synergys, and the cost and the revenue and reaching more patients. >> i want to ask you more about that, because the folks across health inindustr

and, dan, picks are allergan, down so far this year, and alphabet, that's the goog google folks, down 11%. thanks, guys. go to punch.cnbc.com right now to see a growth stock dan likes in the consumer sector. >>> thanks, tyler. getting slammed over the past three sessions and past month for that matter, should traders be cautious or is this now the time to buy in? jim, great to have you with us. >> thanks, melissa. >> even prior to the brexit selloff, jim, this is a group that's been under tremendous pressure. take for instance american airlines basically sitting at 52-week lows. this is a stock down 36% over the past 12 months. why would you step in here? especially given the unknown of the exposure and the impact of the brexit. >> well, it's not just american. most of the group is sitting near 52-week lows. if you look at it on a valuation basis these stocks are trading at levels we haven't seen in about a decade when the industry was fundamentally different, much more risky. so seems like some stocks get priced to perfection, these stocks are priced for disaster and it's disaster we

and for those higher ms just comes on the heels of halliburton baker hughes, pfizer, allergan, staplesjust to name a few. >> political problem here with obamacare. there is only one health insurer is 650 counties and just one insurer in the exchanges and alabama have and five other states. they don't want the merger because the people are saying wait a second, one health insurer, not liking it. stuart: no marketplace if they let the merger go through. >> one insurer would dominate. drain to replay that video, please. they disney employees fending off an alligator a couple feet away from gas as they ride splash mountain. they have no idea what's going on. that is bad pr. more on that story there. the sequel to "finding nemo." a huge success is called finding gory. took in $136 million athe box office this weekend. that's a record. keith come to you first. with a movie like that and a bag pr story in the background, are you buying disney at 100 bucks per share? >> disney is a compelling buy. it's got a lot of brand value. the theme parks are going to be absolute monsters. in shanghai. th

gold up by about five dollars. ,till ahead, shrinking deals after a failed merger with pfizer, the allerganit is eyeing smaller targets, the interview next. ♪ david: bloomberg is focusing on pharma by discussing the industry, after allergens $160 billion merger and -- merger with pfizer, the company is eyeing smaller deals, their ceo and president spoke to us about the companies strategy. >> looking at buying intellectual property, rmb assets and m&a, with respect to m&a, looking at smaller scale talk in dales -- deals that support our leadership and innovation. pick up on what he said, i have more about these -- i hear more about these tight in dales -- top in deals, is this away from the large deals? >> some specific issues to health care which is driven a huge part of the m&a volume, , at thethose megadeals beginning of this year, we saw, when concerns about going into a recession which were false, that m&a activity took a major step down and just beginning to ramp up in the back half of the year, and my dear is in the next couple of months, we will see quiet, especially on global deals

and went after a company, allergan, run by another great ceo, brent saunders. brent is a great guy.ave been benefited. >> what about everybody else? if they had an extra billion to spend on -- >> innovation would have benefited. >> okay. >> society would have benefited. but it was a great way to say, see, american companies are hiding their money. they're not hiding their money. and ian reed said it. he is competing with one hand tied behind his back because ga laxo smith klein, astro zenica and others -- >> andrew says they benefit from being in this country, the infrastructure, not having price control. >> they say we get the drugs from the n.i.h. and don't pay for them. not true. not ever true. we collaborate with academic institutions and we take ideas and things sometimes that are seeds and bring them into reality. >> why doesn't pfizer owe the government money for being able to operate in this -- in the united states? >> they don't -- let me ask you a different question. do you find it troubling, across the board -- take pharma out of it -- that there are american companies th