so, again, bg gas, bg group, rather, a gas producer based in the uk. may be the target of an acquisition by royal dutch shell. this according to dow jones citing sources, melissa, guys. back over to you guys. >> thanks to much, dom chu. what did he make of the move in world? how should we factor in the massive build? >> two weeks ago you would have thought oil would be down $3, $4 on this. it's not. the sentiment changed quite a bit. you have the reflexive process. if oil going lower means the economy might be getting a little weaker in oil patch state which means a lower dollar which would boost oil prices. i kind of think that's what we've seen in the commodity space where you have this dollar correction within a longer uptrend and seen commodities really rally. for me, we'll have to see what happens tomorrow. oil has been all over the map and has not responded to the fundamentals recently. >> if you think about what happened today, the dixie up almost 1%. it wasn't just oil that actually reversed that trend. in other words, held its own but also eme

gas business. we're very very good at that. bg is pretty good at that as well. bringing it together will create a great company when it comes to sbe dprated integrated gas. we've done this before in our energy portfolio last year. >> that was the ceo of shell speaking to steve and karen earlier and he was at pains to point out this is a deal that is going to work at every oil price. i'm not sure about that because if the oil price drops from here on out won't people say that the company has overpaid for bg assets? and he also said it's more about gas than oil but i can't see how this rational for this deal really holds up if we see oil and gas continuing to drop. >> that would be the big question of the day. are they overpaying for this deal but shell has spent billions of dollars over the past couple of years expanding it's oil and gas reserves. it's not an easy task. this is probably an easier way to gain more assets in oil and gas by acquiring bg. they had a challenging year. the stock is down 20% over the past 12 months and in february it was writing down the

it looks like they are getting reserves, this deal could see it up by as much as 28%, largely in gas. bg in the u.k.. it is looking to diversify itself. they have discoveries in brazil, mozambique and australia. they are giving themselves geographical presence when it comes to lng, liquefied natural gas. the emerging markets want to use energy more and the terminal -- the management tenacity, the expertise is also particularly appetizing. a key question will this spark a wave of m&a? he thinks this could capitalize more deals. this is the biggest deal since the oil price started to slump last year. last quarter we had the weakest quarter since 2009 in terms of dealmaking. it could now be the time we see it galvanize the opportunities. we're suddenly seeing some of the majors. why not look at what assets they could be buying. it will be interesting as to whether the european assets become appetizing. an interesting time for the helmer bg group. the chief executive has only been there two months. he is the biggest, most highly paid executive in the energy sector in europe. and of course th

bg known for both oil and gas assets. the addition of those assets will boost shell's portfolio by about 25%. >> for shell, the purchase of bg increases their oil and natural gas reserves as well as their oil production while bg brings to the table storage and tunnelling assets as well as tankers to move natural gas around the world. with the lower oil and natural gas we'ves seen whiting petroleum put themselves up for sale as well as other companies that go into bankruptcy. so the time is right for more mergers and acquisitions as we'll see more consolidation this year. >> reporter: bg's stock dropped 5% since the oil slide last summer. that and wide range of assets make it a prime acquisition candidate. with shell paying 50% premium to try to keep exxon from making a counteroffer some analysts are questioning that valuation. but shell is betting it's cheaper to make the deal for proven reserves than it would be to spend money looking for new ones. >> with the decline of oil and natural gas prices we're seeing that it's c

bg group is a world leader in liquefied natural gas. notwithstanding the fact that bg group has had significant problems of its own over the past 12 months. share prices are down quite significantly. the ceo of shell saw an opportunity it couldn't pass up. stephen: should we have seen this deal coming, given that oil prices have gone so low? michael: i certainly think so. there is insignificant chatter that some of the bigger oil companies may be looking to acquire some new assets were distressed assets, if you like. if you look at the oil and grass -- gas sector over the past 12 months, bg group has been a significant underperformer in that sector. there is been talk that potentially bp could be an acquisition target. these mergers are not unknown in the oil and gas sector. in the 1990's, exxon mobil emerge with mobile. bp itself emerged with amoco. at the end of 1998, that exxon mobil merger was $73 billion. maybe this morning's actions by shell could be the catalyst for further acquisitions not only in the oil and gas sector but also

move. >> this is about expiration and harder and harder to make money getting oil and gas out of the ground. and bgparticular going through ceos, scaleing down assets and big problems in brazil and linked with petro gas and had issues around inquiries. they're looking for partnerships to say lou them to save money and do business cheaper and find that horrible word synergy and could mean job losses. it's really about getting into world markets, bg very big in egypt, australia and brazil the big new markets shell wants to get into. >>> now, playing significant role in the ukraine conflict with both sides accuseing the other of manipulateing the media. with ukrainian channels off air, the population now relyies entire entirely on russian television. a series of reports looking at the success of the cease-fire deal from february following up on one russian tv report. >> reporter: very keen to find outside what happened to that 10-year-old child, russian networks are widely reporting she has been killed in the shelling. >> reporter: we're going to go to that area and try to find the family. >> reporter

gas deal in a decade. royal dutch shell is buying bg group. $70 billion in cash and stock. e combined company would be the world's largest -- second-largest oil and gas company. a white police officer in south carolina is facing a murder charge. he is accused of shooting a black man in the back. he shot 50-year-old walter scott as he was running away from it routine -- from a routine traffic stop. the jury will deliberate for a second day in the trial of the accused boston marathon bomber. his lawyers admit he took part in the attack but say his dead brother was the mastermind. massachusetts jurors in the air and hernandez murder trial are deliberating -- aaron hernandez murder trial are deliberating again for a second day. two people are safe after being rescued from a fire in los angeles. the cause of the fire is being investigated. mcdonald's is beefing up its menu -- literally. they will offer sore lawn -- sirloin burgers for $4.99. olivia: sirloin burgers. still to come, we talked to jim beyond go about the chicago -- jim bianco about the chicago elections. the most fru

royal dutch shell in talks to buy bg, a gas producer 70 billion dollars cash and stock.on the new he's going to make his case next in half hour. and here's why shell is spending so much on oil. it keeps coming down, below $50 a barrel, i think is bad news for america. in the meantime the national average for a gallon of regular, up half a penny overnight. had tend to sooner or later. >>> now to president obama blasting christians at the national easter prayer breakfast at the white house. listen to this. >> on easter i do reflect that as a christian, i am supposed to love and i have to say that sometimes when i listen to less than loving expressions by christians, i get concerned. but that's topic for another day. charles: and well it's not the first time we've heard something like this out of the mouth of the commander in chief. here's a really good gem, you remember this from a few months ago. >> humanity has been grappling with the questions throughout human history. unless we get on our high horse and think this is unique to some other place remember that during the

shell and oil, although an oil and gas company, gas is now more than 50% of its business. bg natural gas business. it is the biggest supplier to china, one of the biggest grow growing markets shell wants good access to. >> a good deal it sounds like especially for shell. briefly one last question one of the big problems with the slump in the oil prices we've seen in the industry is exploration investment has almost dried up. deals like this will that give -- will we see them more investment going back into i don't know -- >> shell has cut its investment bg group cut its investment. as you say, we're in a period investment is being cut back. of course, these are 30 year decision decisions. you have to be making decisions where we will fossil fuel demand be in 30 years. if you go to the latest bp trend trends report for 2050 it says that fossil fuel demand will be far higher than today. though investment is being cut back at the moment because of the low oil price, you have to be think writing is the mine from china, india, south america and 20th, 30th time that demand will go

gas. shell snaps up bg, making the biggest deal in the industry for at least a decade.n in fruit. tsipras will meet with putin in moscow. the greek government says it doesn't want support from russia , at least on the financial front. and, closing a loophole. ed miliband pledges to end the non-domicile rule that allows some people in the u.k. to avoid paying their income tax.

let's talk more about shell's acquisition of natural gas company, bg group.x steel joins me more that jointly with more on the story. are we going to see more of these deals? alix: many analysts expected it to happen in the back half of the year because oil prices were not low enough. what's curious is the 50% premium paid for bg. you would think this would be a buyers market. but that wasn't the case. the other question this rings up is is shell calling a bottom in oil prices? if you flash back to the late 90's when we saw oil prices hit about $9.55, that is when a son took over mobile. you see these huge acquisitions and oil prices have rallied from there. if you think oil is going to $100 a barrel, this is not overvalued. mark: do the analysts think she'll overpaid? alix: that is the big question. they are modeling their forecast on $90 oil in 2018 and 2020. so no, if you think oil is going to be $90 a barrel, but if it stays lower, you run into more serious risk. mark: what are investors telling us? alix: they are saying you overpaid. what she'll really n

bg has spent several billion dollars starting up the queensland curtis energy project. that is the first coal steam gas energy project in the world. the first train is starting up now and the second line is coming this year. next year bg is going to start exporting lng from the united states as well. guy: this happened quickly. how quickly do you think it happened behind the scenes? do you think this deal was one that took months to gestate or it happened over a matter of weeks? i'm surprised they kept it a secret as long as they did. shell has always talked about doing things opportunistically. when did the lightbulb moment happen? tim: that's a really good question. we can only speculate. we haven't been able to get to the bottom of that yet. it probably did happen fairly quickly behind the scenes. shell has been planning this for quite a while. they saw the opportunity. it would suggest that no approach has been made before. guy: why would you hire a new ceo if you are making a transaction like this? tim: exactly. guy: others going to be doing the same thing? as soon as the oil price started falling

it is the biggest oil and gas deal in more than a decade. shell is buying bg group $470 billion in cash and stock. the deal will push shell further into developing natural gas with oil prices following. here is the ceo. >> the way we would look at it if you look at the combination of the two companies, what we could do with the fantastic assets that the jihad, with our capabilities applied to them, we simply saw more value in the combination than the market. pimm: the deal -- brad: the deal is not expected to add to earnings per share until 2017. crude falls again today after a government report said u.s. oil stockpiles increased by 11 million barrels last week hitting their highest level since 1930. meanwhile, the energy information administration says oil could fall to just $15 a barrel if sanctions on iran are moved -- removed. the greek prime minister said in moscow today, meeting with russian president vladimir putin ts. ipras opposes eu sentient on russia. trade between the nations has dropped by 40% last year due to sanctions on greece's economic proble

. >>> the parent company of shell oil has agreed to purchase bg group an oil and gas company in britain. the price about $69.7 billion. a joint statement says the boards of both companies are recommending that shareholders approve the takeover. >>> due to the drought it's important to save whatever rain we can. reporter anjali hemphill shows us how some californians are capturing the water so it doesn't go to the waste. >> this is my water and i can do what i want with it. >> reporter: david is watering his plants the day before a big storm with rainwater he collected weeks ago. he built his rain recycler system himself by installing piping along his house that collects rainwater off his roof. and this pump helps direct it through his garden hose. >> it's incredible amount of water we get from the rain. i mean, it's like 18,000 gallons off my roof alone this year and we have only had two storms. >> reporter: he says it only takes half inch of rain to fill up his 1100-gallon tank overnight. >> there's a lot of water. when you see it, you know how much we're wasting. i expect these barrel

it is the oil and gas industry's biggest deal in a decade. shell has agreed to buy bg group for $70 billion. that company does oil and gas exploration. it's an attempt to close the gap on the world's largest oil company, exxon mobil. >>> a huge number of sea lions comes at a steep price for the fishing industry. >> new data on california's california'scalifornia's california's -- drought shows the state is doing a bad job on cutting back on water. water use fell by less than 3%. the governor has called on residents to cut consumption by 25%. >>> huge numbers of sea lions have converged on an oregon river to feast on a salmon buffet, but some fishermen are worried. >> reporter: record numbers of california sea lions are congregating there. they are suffering in california showing up on the coast malnourished and dying. but here they are fat and happy. they have been chasing and eating a record smelt run. but that smelt run is over and officials are worried that these sea lions are going to stick around and feast on the salmon. they are tribal survey teams in the lower c

as the oil and gas industry's biggest deal in a decade shell as agreed to buy bg group for $70 billionthat company does oil and gas exploration. analysts say it's an attempt to close the gap on the world's largest oil company, exxon mobil. >>> russia and greece are pledging a new era of cooperation after a meeting of the two leaders. they talked about exports and energy cooperation. putin said tsipras did not come asking for money. >> translator: we have discussed in detail how we can boost greek exports to russia. and how we can attract russian investment into the greek economy like in tourism and infrastructure. and how we can further strengthen our ties. i once again want to say how important it is to restart and forget the past. >>> tsipras said the meeting was not meant to antagonize the west. >>> iran is sending two warships to the waters off of yemen. this comes after the u.s. has pledged to step up its supply of weapons to the coalition fighting the houthi rebels. >>> advocates here in the u.s. say the obama administration needs to do more to get u.s. citizens out of yemen. >>

shell paying $70 billion for british gas producer bg group. oil stocks soaring.t a decade. crashing oil prices making tie-ups more attractive. these companies can cut costs dramatically when they tie up like that. >>> help wanted. the number of job openings in the u.s. is at a 14-year high. 5.1 million job openings in february. the first time above 5 million since january 2001. this is one of my favorite job market charts. this is the number of job seekers for each opening. that number keeps falling. fewer than two people now looking for work for every job opening. at the worst of the recession, seven people seven unemployed people were vying for each job opening. that was terrible math. >>> senator elizabeth warren says the minimum wage simply must rise. she told conan o'brien last night about her mother's minimum-wage job at sears. >> and here's the key part. that minimum wage job saved our home. it saved our family. but it was a time in america when a minimum-wage job would keep a family of three afloat. we must raise the minimum wage. >> right. >> so other fa

americans can't see bg, which is british gas. it was up 30, 40%.t's a pretty big premium for something that is a commodity. >> they're taking advantage of the fact that the commodity is down a lot. the stocks are down a lot. this is probably not the last deal we'll see. it kind of reminds me, viewers will go -- when chevron, exxon, mobil, we'll probably see a wave of assets spooked up here. what i was encouraged with today, the stocks didn't get hit that bad. a lot of them were down only a few cents. charles: scott see, wscottie, wa million times. the president taking victory laps with the gas. let's export it. let's liquidify this stuff. we have it. the world needs it. the rest of the world is paying $10 for it. it costs us two bucks. you want to help americans. open it up. >> absolutely. liquefy natural gas might be the best news america can have. we are the best point to do it. it will save the transportation department. and the transportation. because we have the best way to not only transport it through pipelines, but also through our shipping

gas company. i thought van buren was going to move towards crude. they circled back to a very old target. bg is a natural gas group for the most part. the synergies between shell and bg are huge. that is the reason it may not be as big as it looks. alix: for the premium? >> that and the amount of debt they have. they have 16 billion in debt. it's a heavy price. alix: they could be cutting the credit rating. talk to me about exxon making a bid for that. it sounds crazy to me. >> does this deal trigger the next wave of mergers like we had back in the 90's where we had one deal and a flush that followed? the difference was this there was some great logic between these companies coming together. i think for exxon, do they have the firepower to do it? sure. there is less logic for them doing this. exxon is big in the production but not so much trading. there is contentious stuff around regulation. there will be a move to say we really want to come over the top. alix: do you agree? they want shale. >> we are talking about the method in which they approach the market. let's put it very simply. exxo

bg. they were trying to meet deliverables for natural gas.ndrew gould is the chairman of the company and former ceo of slummer -- i think that shell oef paid. i don't want to say dramatically overpaid because i think they could have bought this thing for far less. no one else was going to come in. this is a liquefied natural gas. the only thing that i really like about the deal is that i don't know if bg could develop 500 barrels a day of brazilian properties. that makes sense. i think this stock, if you wanted to sell calls against it they did clear the dividend. i think that's important because a lot of people felt that royal dutch was going the cut the dividend. instead they see the dividend out for a up kofl years. the stock is not being annihilated. >> $25 billion into 2020. >> the companies have to have this vision and they do have cash flow and there's a lot of -- there's absolutely a lot of overlap. world dutch can do a lot. in the sense of buying the stock it could work its way higher over the next seven years. >> yeah. >> got to tak

gas that we've seen in quite some time. so, again, according to dow jones, citing sources, royal dutch shell is in talks to acquire bg group ut a $46 billion gas company, natural gas company, based out in the uk and it trades over there as well. we'll see if it has any affect on the shares as we go into tomorrow morning's trade. back over to you. >> just as we've been discussing potentially a big wave of more dealmaking activity that one would be huge. no doubt coffee and college go hand in hand. now starbucks is taking it a step further. the coffee giant upping its tuition plan to offer all eligible employees a four-year full ride through arizona state university's online degree program. for more we're joined by nicole smith, chief economist at the georgetown economy center on education and the workforce. nicole, what do you think about this move by starbucks. should they just have given the money to workers or is this the kind of perk a lot of workers are looking for? >> thank you for having me. i think from the onset this is a tremendous move. it's a great opportunity. i think it's the difference between teaching someone

shell has agreed to buy the british natural gas company bg group for about $70 billion.mpanies really have been looking to reduce costs as oil prices tumble. now, if this merger is approved shell would close the gap on exxonmobil as the world's biggest oil producer. >>> you have been served via facebook. a manhattan judge ruled that a woman could serve her husband divorce papers over facebook's private messaging system. now, the 26-year-old nurse say she tried every other route to get a hold of her estranged husband. she was finally forced to resort to social media. >> all right. my kids are going to love this. byoc. so 7-eleven is kicking off the summertime a bit early with its first-ever bring your own cup day? >> reporter: hope you're thirsty for a slurpee. this saturday, customers can fill up any cup that they bring into the store for the price of a medium slurpee. there are a few rules. you can't use a bucket or a garbage as a cup. but after that pretty much anything goes. >> i used to work at a 7- eleven. i thought i would be drinking slurpees forever and a day and

where we will be selling gas to bg. probably will be shell. >> well any concerns about whether that deal gets consummated along antitrust lines? just curious. >> i don't think so, i think it will be fine. >> you think there's a smooth pathway to completion? >> i don't see any reason why not. we expect it will be shell. but we'll see. >> talk to me about your outlook on the markets. you talked about some of the paradoxes in the thinking in the u.s. versus globally about oil and gas prices and their relationship. can you speak to that to our audience a little bit? >> the first thing is we have a huge abundance of gas, no matter how you look at it from the united states from a regulatory standpoint and a political standpoint. it is not a hot issue any more. if we don't find demand for the gas, we create a lot of disruption that's not attractive and everybody seems to be in consensus on that now. to a large extent. there's always some outlying forces, but not too concerning today. >> so you put it in that perspective, with

gas industry. shell agreement to buy bg group. adding partners to serve the bloom and energy consolidation. -- boom in energy consolidation. is that what we should expect? this is just the beginning and other majors like exxon mobil or chevron will start buying as opposed to selling? >> historically, there have been a lot of megadeals in the oil and gas space. people have been looking at the distress side of it since the decline in prices that began last summer. there will be a lot of activity on that side, of course. in the nature of shotgun weddings. this deal is interesting because , unlike most deals these days although a bit similar to the kraft foods and heinz deal, the majority is being paid in stock. it's easier to convince a target that this is a good thing to do because you will participate in the upside created by the deal because you are getting a lot of stock, and some cash. erik: is this going to be -- are we in for a repeat of what we saw in the late 1990's when exxon bought mobil and chevron bought texaco? >> when

bg. a major deal in natural gas space. then milan, this afternoon, announcing it was offering to parago to buy it for $28.6 billion. nearly $30 billion deal. jackie deangeles covering the energy deal. first, though to meg terrell who is here at hq on this breaking announcement in the middle of the afternoon. >> it was kind of unusual coming out right in the middle of the trading day that milan is offering to buy parago for $205 a share. almost $30 billion in a combination of cash and stock. mylan saying that represents 25% where perrigo was at earlier this week. in a public letter the twol companies have had a number of discussions over the last few years, and this deal would give both more scale and reach in an environment where those are increasingly important. the combination would create a company with more than $15 billion in annual revenue, he says, from generic and over-the-counter medicines. both companies stocks are trading that they're surpassing. they're now trading about $200. the deal comes amid an unprecedent

gas mega giant. royal dutch shell is brining -- is buying the bg group. the deal is worth $70 billion. the new company will be the second biggest in the global oil and gas industry. the sale price represents a 50% premium above bg's closing price. >> the way we would look at that is if you look at the carbonation of the companies what we could do with the assets that bg has, we saw a lot more value in that combination. matt: it is the industry's egg is to deal in at least a decade -- biggest deal in at least a decade. some traffic controllers are not showing up for work. about 40% of french flights are being canceled. air france says most of its long-haul flights will take off as scheduled. saddam -- chicago voters are giving their mayor another four years. at rahm emanuel one a second term. he says the battle will make you more effective. -- will make him more effective. >> to all the voters i want to thank you for putting me through my paces. i will be a better mayor because of that. matt: the challenge from a fellow democrat was a rarity in chicago politics. rahm emanuel must tackle

flip side "the wall street journal" report that royal dutch shell in talks to buy bg group, a large british based oil and gas producer. market value after $46 billion and that would make this one of the year's biggest mergers if it actually happens. the potential deal coming as both energy companies have taken steps to adjust to falling oil prices. joining us now to talk more about crude oil prices is francisco blanch. head of global commodity research at bank of america merril lynch. welcome with us. bottom for the foreseeable future do you think, or one of thes where it's going to yo-yo? >> i think it's going to yo-yo for a while. as you just reported have gone out in the past week against market expectations for even a potential draw at curbshing, potential price. so we think the market is oversupplied. a fourth million barrel with refineries at rates of 91%. here we have a surplus in this country. should keep ong f a few weeks. >> do you explain the past two day rally in west texas crude as having everything to do with uncertainties in the middle east or what? >> well it's hard to explain. the last coupl

. >>> new this morning, the parent company of shell oil has agreed to purchase bg group an oil and gas company in britain. the price tag $69.7 billion. a joint statement says the boards of both companies are recommending that shareholders approve the deal. >>> and riding bart is about to get more expensive. >> details on raising fares. >> a cancer patient kicked off a plane. >> from the kpix 5 weather center we have a change in the seven-day forecast that you are going to want to know about. >> and traffic heating up out there. i'll new customers can save an average of $500 just by switching to progressive. so you'll be bringing home the bacon in no time. sorry. get a free quote at progressive.com. >>> good morning. time 6:13. take a look at the snow falling in the high sierra. this is nyack where currently it is 27 degrees the winds are calm and the snow is on the fly there. we have rain on the camera lens looking towards the san mateo bridge. grab an umbrella. >>> bart plans on raising fares 3.4% and it all starts in january. to go from walnut creek to powell street costs about a qua

meanwhile, shell has agreed to by bg group in the largest oil and gas deal in more than a decade. is paying $70 billion in cash and stock. here is the ceo on transcanada on whether more deals will happen with the club of oil prices. >> deals like this will be logical in this kind of environment. we have seen this kind of cycle before where we see consolidation of the industry. then we see the consolidation at other points in the cycle. it is a natural evolution of where we are at the current time. brad: wti crude is down 50% in the past year. procter & gamble is moving forward with plans to sell some of its beauty brands. they have contacted possible bidders for it hair care cosmetics, and fragrance units. people familiar with the matter say companies contacted include revlon, unilever, and henkel. super pac's affiliated with republican candidate ted cruz are expected to raise $31 million by friday, less than one week after launching, according to an associate of the senator. there are no known cases where an operation backing a white house hopeful has bank this much money in less

s royal dutch shell which has been investing heavily in oil and gas reserves access to bg's multibillion dollar projects in east africa australia, brazil among other markets and now the bet on further m and a in the oil and gas space is providing a boost to other european oil names. it's one of the best performing sectors here in the u.s. total, eni, tullow oil all up in today's trade. >> thank you seema. >> i saw in doing our pretapes i saw that i was saying 70 billion and i thought i better check this. a lot of times there's debt. we want to just talk about the equity value of deals like this and it really is 70 which is surprising because it's a 50% premium. >> it's a huge premium. >> that's why the ceo is like yeah -- it's a good idea for him to say yes for shareholders. maybe it's good for royal dutch shareholders as well. >> i'm thinking that you have to do that in order to fend off other bidders if you're thinking that somebody could come in. >> for the big premium. >> say it's a big, big premium. >> it's all fine and well for the ceo to say no no no. this is not a defensive move

of oil means the companies have got to cut cost and royal dutch shell and bg announcing the biggest deal we've seen in oil and gas in ten years. >> and steve, there is good news on the way for american drivers this summer. you know we love our cars. what can you tell us about that? >> the driving season. well, it's upon us almost isn't it? well last year the average price for national regular gasoline was $3.59, amy. this year there is an expectation from the energy department it's going to be as low as $2.45. that is great news for american families. they're going to get around about $700 more to spend on other things because that's the reduction we're expecting in 2015 compared with 2014. so the driving season is boosted by those low prices. and of course as we saw in the previous story, it's causing a lot of problems with the companies, and hence, they are looking to amalgamate more. but great news for american drivers. >> all right, steve. thanks a lot. a lot of american families will like that news. >>> still ahead, tiger woods talks about his hunt for his fifth green jacket. and why the winner of espn's mar

bg group. we'll look at what that deal means for the energy sector. that is right after the break. stay with us. ♪ caroline: welcome back. yesterday we saw megam&a in the gas man who holds bg group is matthew beesly. great fit you say. great anesthesiaic fit? mark: it is. >> they talked about how they were liked in brazil. a good growth asset for bg. they want to increase exposure. increase the important -- in a low oil price world. it is very complimentry with bg's greens land down in australia. it boosts their l & g. the largest player in the l & g market. while today it is going to be difficult to arbitrage that market into -- exexcess profits from it, the future with oil prices higher, could be a source of growth for that business. mark: as a bg shareholder you're smiling. if you were a shell shareholderer, you are not. a decline since 2008. earnings per share won't rise until 2017. it relies on a quick rebound of the price of oil to around $90 a barrel. should there be skepticism among shell shareholderers or not? >> i think first of all it does cap dividend growth for the next couple of years. they are very clear. paydown debt is going to be above di

. >> shell buying british gas company, bg group. biggest merger in 20 years. a $70 billion deal. nd gas reserves 20% to production. the crash in oil production means takeovers. they're going to try to cut costs. that could mean job cuts. >>> efforts to conserve water in parched california are falling short. a new report shows water consumption fell 2.8% in february just 2.8%. the smallest drop since the government started tracking water usage next year. next step stricter rules, steeper fines for water abusers and the prices that you pay for produce that's grown, of course in southern california likely to rise. alisyn. >>> thanks so much for all of that. prepare to be amazed and inspired. razor sharp and full of life at 100 years old. so what are his secrets? cnn chief medical correspondent dr. sanjay gupta finds out in this edition of "the human factor." >> reporter: robust would be one way to describe dr. ellsworth wearing. the 100-year-old heart surgeon does his own yard work walks regularly and still drives. >> you drove here today? >> driving is nothing. i worked until i'm 95

gas. >>> staying on energy, shell is buying a smaller rival the bg group, they're paying about $70 billion it. we talk about oil and gatt gas all the time on this program. time we had the former president of shell on the show he said i made a bet a $100 bet with him. just roll the tape. if i had a bet with you if i said the price of a gallon of regular gas national average according to aaa will not hit $4 a gallon this year, i'll put $100 on it says i'm right. will you match me? >> i'm on. i'm on for it. stuart: okay. you know, i honestly think that's easy money. i hate to take money off a guy like john hofmeister, but here he is. do you want to back out of the pet? pause there is no way on -- out of the bet? because there is no way we are going to hit $4 a gallon in 2015, is there? >> says who? no you may say it. i'm a price hawk i'm going to stay a price hawk because two things, stuart. the level of demand over the next six months or so is really not known, and i'm an optimist. i think the world needs more oil. and secondly, i think that people woefully underestimate the insidious proble

gas business which we're hardly even talking about? >> i think a lot of this is about lng. nobody is really talking about that. bg has great assets for liquefied natural gas, the deep water assets. i think they're buying their way in reserves and into assets when they don't want to have to go and acquire them through the drill bit and there's a lot of companies now are clearance saeld and at a song like you mentioned. i think we will see more of this because companies are levered up. if they can't get drilling financing, they will have to be acquired or they'll be in bankruptcy. casualties will happen let's hope less bankruptcy and more acquisitions but who knows what's going to happen in the near term. if you have a lot of debt you're in trouble. >> this deal certainly got everybody's attention. chris faulkner carl larry, thank you for joining us. >>> time for a cnbc news update with courtney reagan. >> here is the update for this hour. a federal jury has found dzhokhar tsarnaev guilty on all 30 counts in the boston marathon bombing. he now faces the possibility of the death penalty. the death penalty phase of t

traders when they heard the headlines about the possible bg group with royal dutch shell thought about exxon mobil and xto energy. another natural gas company in 2009. remember a $31 billion deal. nothing to shake a stick at in terms of the overall size of things. check out some of the stocks here that have been moving. earlier today on this idea maybe they could be potential targets here because they do have natural gas assets and operations not just here in the u.s. but also around the world as well. anadarko, apc, one of those names that some have been talking about, one of the stocks that did see a bit early in the session come off that level a little bit. also another one to watch here is apache. see those shares as well, they are now marginally in the red, down by about a third of a percent the. earlier today we saw a pop on the idea maybe they could be one of the companies to take a look at as well. another one to end off at least a large one here in terms of the independent oil and gas producers that have a big gas focus, eog resources, it's like a $56 billion company. a very large company here but still, you can see earlier

. >> i have a question for you on the oil and gas sector because that mega merger announced yesterday between bgnd shell fuelled speculation that we could see further m and a. has that fed through to asia as well? >> less so in bound acquisitions. more so outbound deals. remember a lot of budgets have been slashed, especially among the big national oil companies over here. they are still looking at value. they're still looking at acquisitions especially in a dit stressed space in norkt america. i know they're out there looking assets in america and let's not forget also that the chinese and the malaysians have been active and the canadian oil sands. >> let's move on to the other big focus of the markets. there was a division over whether the central bank should start raising rates. minutes shows officials believe recent soft economic data could make a mid year move less likely. while several thought june would be the right time to hike others thought the fed would need to wait until 2016. every day there's a new fed official voicing their opinion on whether they should raise rates in june septem

bg group for $70 billion in cash and stock, a monster deal by anybody's standards. were you surprised? >> not as surprised. the companies have mutually attractive interests in gas and lng so it's not so much a surprise those two particular companies got together. you get surprised at the magnitude of that and the question, that opens up the floodgates on additional m&a activity. >> scale is winning in this industry. do you need to do a deal? >> with your business is $1.5 million a day growing to 1.7 million a day. on top of the reserved space on top of that. we have size scale and scope all right. "a" credit rating, a good strong balance sheet, we can weather the storms. we feel comfort obl on the size scale and scope of the company and we have exploitable inventory so we have a lot of opportunities to grow well into the next decade. so for us doing a deal it would have to make a whole lot of sense. >> we'll be watching your three-year operating plan. i know that investors were very optimistic about it when you released it. thanks so much for joining us. >> thank you maria, it's always good to be here. >> good to see you. >>> back to the worst kept secret on th

bg, obviously, had surged royal dutch shell is down 5% so a heavyweight there falling into negative territory. inevitably a lot of the smaller oil and gasrope and other oil mainers have risen in response as people say who might be next if there's to be further consolidation. this is a name that keeps coming up and come up in the program before. meanwhile, later breaking news within the european session, electrolux, remember it's paying $3.3 billion to take over ge's appliance unit. it's swedish. it wants to expand in north america. it is expanding in north america but warned its first quarter here is now going to be negative. it it's a negative result. partly it would appear more about the product redesigns they're moving from a different range of fridges and freezers and trouble with their cooking plant in memphis which they were ramping up. they have a huge number of brands. check it out on-line if you don't know it. that stock has been falling towards the end of the session. in moscow the greek prime minister met with vladimir putin. nothing concrete seems to have come out of that. they will renew their relations, reinvigorate their

bg with prized oil fields off the coast of brazil. this is a $70 billion deal. 7-0 billion. if completed, it would add 25% to shell's oil and gas reserves. energy prices have tumbled to about 50 bucks right now. bigger firms swoop in to take over. shell just the latest to add to its expansive fort toll yoeportfolio. since june there have been more than 50,000 oil job cuts in the u.s. because of that crash in price of oil. that's according to analysis from cnn money. layoffs are up almost 4,000% in the first quarter. >> wow! >> that's what happens. look you had $100 oil and just this flood of investment flood of job creation. and when it crashes so quickly, you see the companies pulling back quickly, too. >> you see money in these companies. the size of that deal is enormous. >> absolutely. >>> 12 minutes past the hour. dramatic closing arguments in the aaron hernandez trial. the former nfl star accused of killing his friend. now the defense admits he was at the murder scene. new developments next. >>> the jury in the boston marathon bombing trial resumes deliberations this morning. on tuesday the panel sent the judge two notes