b.a.t. thought they'd wrap this up last year. they didn't.hey had to part with a bit more value than anticipated. they're also talking about synergies that are significant, cost savings that are fairly large. jim, they get it done with more cash in terms of the component going from 60/40 stock cash to 50/50. reynolds shareholders will own about 19% of this combination. 29.44 in cash. we're talking about a third quarter close, most likely, because you'll need a new security listed from b.a.t. >> any chance any of the regulators will say there's too much consciencentration in a business? this is a lot of concentration. >> there is the chance. but there is the belief, given the ownership stake already, this is not going to play here in concern with any trust. another question, does this get philip morris international talking? >> we're spending a lot of time on that. it is important. >> they're not at this point but it has been around ever since this initial deal was announced as a possibility. >> the old beer and tobacco companies in decline ge

., is that when the wto rejects it, they might fix it by making it a b.a.t.ow, there's no trade advantage, no change in the terms of trade by having a value added tax inside your country. you're financing bigger and more wasteful government, but you're not distorting trade or getting an advantage on trade. >> dan, thanks so much for joining us this morning. >> thank you. >> dan mitchell from the cato institute. a programming note, please don't miss my exclusive exit interview with treasury secretary jack lew tuesday at 10:00 eastern. guys, republicans, that's the only people i'm talking about to about this b.a.t.. they're very divided. i'm getting guys who love this thing and people who absolutely hate it. larry kudlow yesterday, did you see that? that was an eping appearance. if larry was ever going to ever -- very nice man, but larry got very animated, heated about this b.a.t. >> and the other problem, once you have a v.a.t. that comes in, you can set it at certain levels, but once the camel gets its nose under the tent, it goes higher and higher. >> i real

that was just the day before b.a.t.'s launched its public proposal. >>> following on from the deal we were talking about yesterday, the people, all of us, were all digesting the news of a mega tie up between the eye arwearmaker, luxottica and essilor. also in an interview with an italian newspaper, he said as soon as his presence is not essential, he will step down from an executive role. i believe he's 81, 82. so some changes within the e eyewear groups. >>> some other stocks we're watching today with a slate of earnings out. you have rio tinto hitting the middle of its targeted range for iron ore shipments from australia in 216. in the latest quarterly production report, they maintained guidance for the current year of up to 340 million tons. >>> next to it, alstom, underperforming the broader market, down by 3%. it's reported higher sales and orders for the first three months of 2017, and order intakes are up from 16% a year ago. still investors getting out of it. and zalando reporting a 25% rise in revenue in the hol

uk exporters that rely on the currency, such as b.a.t., unilever, diageo, burr numbberr. european banks. look at bianco popular moving lower after ubs downgraded the spanish bank from neutral to sell. you can see bank of popular down about 1% on the day. another rough session for lufthansa after the german airline said higher than expected fuel costs could affect profits this year, shares down 6%. and speaking of currencies, the turkish lira also grabbing a lot of attention, falling to another record low. it's certainly not a happy new year for the currency. moody's today said that turkish bank profits will be hit significantly this year. the lira is down about 2% today. but already down 5% in 2017, making it so far the worst performing emerging market currency this year. carl? >> all right, seema, thank you very much for that. seema mody at hq. >>> let's get a news update and go to sue herera back at hq. >> hi, carl, thank you. here's what's happening, everybody. esteban santiago, the iraq war veteran accused of shooting and killing five people at the ft. lauderdale airp