there's ian reed, speaking before the business select committee.ning us with his thoughts, scott muller, director of the research and development center at cass business school. there is no agreement at the moment, on the table. >> no. >> we've had a bid than been rejected. >> and a sweetened bid that's been rejected as well. >> we're talking about something that's not even on the table. >> with threats of going hostile possibly too, yes. >> i wonder, if they go hostile, right, in the uk we are fairly open to m&a deals. >> right. >> in some way shareholders or pension funds will take the view, if i get cash out, i don't really care. if i get enough premium, i'll take that cash out, do a good deal, re-invest it in something else. not necessarily the case with pfizer. i wonder whether they'd want pfizer paper. how good are they at creating value? >> that's trabsolutely true. they had known with their acquisitions to be fairly aggressive in terms of trying to take out costs. that's one of the things that of course everybody is really afraid of right h

coming up, pfizer's pitch to british lawmakers ceo ian reed on why the u.s.buy astrazeneca when we return. we started zya with the thought that the kid on the back of the bus might have a song that he has in his head but he just can't get out. with the technology of cloud, we changed all that. i can sing something into my device. up to the cloud it goes. back down it comes sounding better. we break down the walls of creation, and we give music creation for the masses. ♪ ♪ >>> pfizer making its case for astrazeneca. we have a rundown of what ian reed is telling british lawmakers. >> defense 25 years from now. the unmanned trend will dominate the battle fields in 2039. jane wells gives us a look into the future from drones to robots. >>> hillshire brands striking a multibillion dollar deal to acquire pinnacle foods. the ceo talks to us first about the new menu. the second hour of "squawk box" starts right now. ♪ >> is that jimmy dean? big john. good morning. welcome to "squawk box" on cnbc. i'm bad joe with big andrew ross sorkin and perfectly sized kayla. beck

ian reed testified in parliament today. they are concerned the deal would lead to job cuts.d down to be on his commitment to reserve charge. pfizer plans to swing the $101.9 billion bid for second time. it may wait until after the hearings to offer more. that is a look at the top stories in news at this hour. countdownst off your clocks -- the crisis looming this time has to do with highway funding. unless congress and the obama administration reached a deal on the new highway bill, transportation projects across the country could grind to a halt this summer. our chief washington correspondent, peter cook, spoke to the transportation secretary administration's deal for a new push here. we're near crunch time already. >> the current highway bill does not expire until the evening of september, but the department of transportation estimates the highway trust fund could start bouncing checks by august, putting 112,000 construction projects, 700,000 jobs intensely in jeopardy. time is already running out to pass a major transportation bill in this midterm election year. the big s

doesn't matter. >> not surprise ian reed is an accountant by trade.hat's the driving force behind it. >> lawyers, accountants, that's who runs companies. >> pfizer does want to try -- try to do it under something called a scheme of arrangement under uk takeover law, make it friendly. it will shorten the clock for them and that would be helpful. we'll see if they choose to come back with a higher offer. >> all right. >> i find this amazing. i find this is happening in the vacuum of people saying, geez, i don't know if you like the stock market or not. $100 billion -- a company -- i know it's british, but the fact is there could be $100 billion deal. that's a lot of capital. verizon was big. m&a, are you going to still say it's not happening? >> oh, no. m&a is back. >> you don't talk to me in the morning anymore. you're on the phone. >> on the phone. >> m&a -- hey, jim, gives me the heisman, i call all these bankers. >> it's back. >> when we come back, the white house, we'll get their take on the jobs number today. labor secretary tomas perez will join

delaware governor raising his concern to ian reed.ll talk about his biggest worries about a possible merger after "squawk box" returns in just a moment. >>> welcome back, everybody. the dow opening up by another 46 points. that comes after big gains last week where the dow closed at yet another record high. a quick check of shares on allergan. it rejected the takeover from valeant. it says the bid undervalues the company and is not in the best interest of shareholders. it is down 1.3%. >> the governors of delaware and maryland voicing their concerns about the proposed takeover from pfizer of astrazeneca. great to see you, governor. >> how are you? >> i'm great. we have talked many times in the past. and you are someone that has figured out that a lot of jobs come from the private sector, don't they? this is like an important thing to consider, is it not, what happens with pfizer? not just in terms of jobs but they will be domiciled in the uk and paying uk taxes and not taxes here, right? why is this happening? >> well, right. first of

." >> marco sent a letter to pfizer, to ian reed, the ceo of pfizer, expressing deep concerns about the bid. they question the impact on the deal would cause jobs in both states as well as pfizer's open interest in relocating its corporate base to britain. astrazeneca employs around 3,100 people in maryland, 2,600 people in delaware. "wall street journal" is laying out the tax implications of a pfizer/astrazeneca deal and not just what it would do for pfizer but it would affect pfizer shareholders in some weird, not well understood or well-known law, i don't know, i have to read it. it's in the ten-point of "the wall street journal" today. pfizer shareholders face a tax hit if a deal for astrazeneca goes through. why dontd we learn about it together. >> what page? >> b1. >> it would cut its yearly tax bill but it would trigger something for shareholders. shareholders with stock in taxable accounts would own capital gains taxes in the appreciation in their chairs when they're converted into the stock in the merged company. you'd have to pay the taxes on the appreciation. >> oh, that woul

a lot of headlines clearly coming from london where pfizer ceo, ian reed, has been defending the potentialeca. interestingly, he didn't promise that he wouldn't cut jobs in the u.k., and at the same time said that he had options. one of those options clearly by inference is he could go hostile on the bid. we are expecting a higher offer for astrazeneca, it would appear, in the coming days. one more ceo under pressure, perhaps of a more severe nature, is brady dugan, coo of credit suisse, and they're trying to deal with the fines here in the united states for allegedly allowing americans to evade the irs for so long. rueters is reporting the fines could be $2 billion, that the new york is demands $1 billion. in zurich, the politicians there are suggesting that brady dugan should resign. they say you take his salary of $11 million, if you're justifying the high salary with the responsibility you can carry, you cannot duck that responsibility in emergency, or so says the president of the s.p. let me just leave you with one more thing, guys. tomorrow is the quarterly inflation report from the

we need to see the number and we ian to see if even read -- reed can convince parliament. >> he doest to make this a hostile takeover. he does not want to go to the shareholders. tell us how this deal stacks up. of the sumsn terms we are talking. these numbers for forever thing else we have seen in the u.k. is a 60d a scene billion pound deal. wound up coming in around 12 billion pounds. this is six times bigger. the numbers are massive. what they will do to keep jobs here in the united kingdom a. there are assurances that are meeting a skeptical audience. they have to make sure that they get a return on what would be a sizable investment. outsidenichols parliament. >> we are going to bring you live pictures from the pfizer testimony in the next hour. ♪ >> will come back to "the pulse ." we are streaming on your tablet and phone. >> we are looking at germany's largest utility by market value. dropped and revenue is reduced. they are shifting toward renewable. there is a surge in wind and solar generation. that is an effect to cut power prices. they have reiterated their outlook for 2