pfizer ceo ian reed said the move is driven by more than tax reasons. >> there are benefits from tax.f there were benefits and tax weren't there i would still try and do the deal but i suspect the price would be different. >> reporter: the deal's price of about $363 per allergan share based on friday's pfizer closing price may have fallen short of shareholders' expectations. analysts say they may have been expecting up to $390 a share. allergan ceo brett saunders who will join the new company as president and chief operating officer disagreed the price was insufficient. >> what you get is a roh forma ownership of 44% of the fourth largest company by market company in the world. you get access to 100 new markets. you get access to a deeper pipeline. you get access to $25 billion in free cash flow. and you get access into a dividend for shareholders. so when you put that all together the value creation for allergan shirlds is immense. >> with allergan pfizer gets a slate of products spanning es at the time sxikz dermatology, neuroscience and eye care. allergan's flagship product botox b

. >> now an interview with ian reed, ceo of the pharmaceutical country. he sat down with wall street journal financial editor dennis berman and a discussion that covered drug prices, government regulation of healthcare, in the future of health technology. this is an hour. >> so without further do we have lots to discuss, lots of interesting things. there's. there's so much going on, we have particularly tough things. in the world over healthcare more generally, we been reported with wall street journal on this extraordinary state of merger activity going on in the healthcare section. their massive massive changes going on in this country and around the world and the way healthcare is organize. we are delighted to have for the next hour, this really fascinating and timely discussion. please welcome ian reed, chairman and ceo of pfizer, dennis berman of the wall street journal. [applause]. good morning. anything you would like to talk about? [laughter] >> i will just take your lead. >> okay, from page of the wall street journal, pfizer implement a discussio

. >> yeah, but look, ian reed the last four years has done a remarkable job of transforming pfizer. he has done things like the zoe wet ta spinoff, cap sa gel, he has really revamped their entire r & d approach and very productive looking at immunoand oncology vaccines, rare diseases, you think about it from an allergan shareholder perspective, you get these great franchises, eye care, aesthetics, gism, now you merge them with franchises in cns and immunooncology, one of the hottest areas in pharmaceuticals, rare diseases and vaccines. now you have all the top growth market, not just a few of them but all of them h >> does he embrace open sciences, you have made us feel is such a differencemaker for allergan. >> he does. and what makes our open science model even more formidable in this combination is you get really strong discovery capabilities with a mindset of open science. in fact, pfizer announced today with help parts at the for really interesting early molecules, doing open science already. >> let's look at what you get if you own shares. you get pretty big chunk, 44% of the

ian reed will become the ceo of the combined company. we'll talk a lot more about this deal with an analyst. likely to be politically controversial. >>> in other news, petco will be acquired by cbc partners are reportedly planning to buy the company from the retailer's current private equity owners for $4.7 billion including debt. >>> the deal news keeps on coming. atm make jeer diebold buying wincor for 1.8 billion in cash and stock. >> staying here, right? >> that's -- do you get any inversion benefit from -- >> i don't know. >> to go to germany? >> i don't know. if they moved over there -- >> something particular about the way pharmaceuticals get special treatment in terms of r au -- r&d. glad you're here. hope you're here for a while. >> yeah. me, too. i'd like to get through thanksgiving. >> when you leave and go to -- >> bad things are happening. >> unless you need to go cover a trial with this guy after they catch him or something. >> if they get him alive. >> yeah, probably. >> i don't think they're eager to do that. >> maybe not

ian reed will reportedly lead the new country with saund ders in a very senior tleel could set him ups reed's possible successor. reed has been vocal about high tax rates which puts companies at competitive disadvantage. pfizer's tax rate is 25%, the highest among its peers. by linking with allergan it will lower that below 20%. allergan's rate is about 15%. the deal combines two drug makers with more than $60 billion in annual sales. the top selling products such as pfizer's pneumonia treatment prevnar and botox it says it could launch more than a dozen new products over the next several years. it could generate $15 billion in sales. it's the result of several mergers. it was previously a generic drug maker called watson pharmaceuticals. in 2012 it bought companies actavis. allergan is up more than 5% and fooiz jer is down more than half a percent. >> landon, thank you very much. >>> quick look at your headlines this morning. brussels in lockdown for a third day while the search continues for a paris attack gunman. >>> pfizer's board reportedly approving a takeover for allergan for $

also an important thing to note, i think reuters just reported today that ian reed the ceo of pfizerremain in that role and brent saunders the ceo of allergan would take a senior position at the company. what i'm hearing is that brent saunders could be a very likely successor to pfizer's ceo ian reed and presumably the way it could be announced is as we have seen with other deals with brent saunders has been selling the target company when he was c. when it's announced the ceo of the buyer is announced as the ceo, this happened with activist but after the deal closed brent saunders was named the ceo of the combined company. it's not inconceivable that couldn't happen here as well. bottom line it sounds like allergan and pfizer are still continuing their talks and could be early next week. >> meg, thank you. on those talks which are not deterred by what we heard from the government. >> if anything they're probably fast tracked. advertiser has been seen as very intent on doing something like this, i guess they are okay with the fact that pfizer shares under performed merck and lily, fo

here's pfizer's ceo ian reed on the deal just last hour on "squawk on the street." >> this is a greateal for america. it allows us to continue to sustain an investment of approximately $9 billion mainly spent in the united states. we have 40,000 combined employees in the united states. so i think it's, you know, it's a great deal, i'm very happy to be announcing this deal. >> i know you have a lot of thoughts on this deal, but the fact that headquarters will now be in ireland, is that just a formality in your opinion? >> of course it's a formality. the way we decide where companies are based is absurd. most companies are based in delaware in the united states. it's just a piece of paper in a lawyer's filing cabinet, that's the whole thing. a company is reorganizing to try to get a better tax rate. this is going to continue to happen until either congress finds a way to make it absolutely impossible to do and i don't think that's in the interest of the united states or we come to some smarter global taxationism where you're basically taxed on sales in each individual country instead of

. >> i wonder how the comment by pfizer's ceo ian reed, that the deal is great for america, is playing on the hill. >> that's going to go over like a led bal loneloon up on capito hill. treasury taking some steps to tighten the rules on inversions. pfizer ceo saying on our air they've looked at that and they feel the deal gets through the window. battalions of lawyers have been scouring those rules. >> eamon, thanks so much. live on the hill in the aftermath of the announcement. can you throw up a chart of the euro? i appreciate you doing that on the fly. i apologize for calling for it like that. call your attention to the fact -- thanks to our michelle caruso car brar ra. the euro, it's a seven-month low against the u.s. dollar. the dow, which was modestly positive as we ca cayman the caymcaymamcame on the air. not only corporate earnings but everything else in the weeks ahead. i want to call your attention to that. up next, carl icahn turns up the heat on aeg. plus, christmas coming early in canada. what amazon is doing to attract shoppers ahead of black friday. and why the 2016 pres

i think ian reed has blockbuster drugs. i like him. he's to the point. pfizer's for me. don't forget, louis at bristol myers i think are even better. that, ladies and gentlemen, is the conclusion of one of the most exciting lightning rounds i have ever done. i have asthma... ...one of many pieces in my life. so when my asthma symptoms kept coming back on my long-term control medicine, i talked to my doctor and found a missing piece in my asthma treatment. once-daily breo prevents asthma symptoms. breo is for adults with asthma not well controlled on a long-term asthma control medicine, like an inhaled corticosteroid. breo won't replace a rescue inhaler for sudden breathing problems. breo opens up airways to help improve breathing for a full 24 hours. breo contains a type of medicine that increases the risk of death from asthma problems and may increase the risk of hospitalization in children and adolescents. breo is not for people whose asthma is well controlled on a long-term asthma control medicine, like an inhaled corticosteroid. once your asthma is well controlled, y

ian reed said they are at a competitive disadvantage to be an american-domiciled company.uch does it help, having a lower tax rate? what we have been able to do is use the business model and expand globally. europe,us a gateway to allowed us to acquire a company called omega, a phenomenal, business that we now have as part of the company. it gave us so much more. the taxi part of the issue? yes, it is part of that, but it gave us the global structure to acquire the omega business and now we are focusing on more businesses into omega and that is what really is important to us. cynthia: when you talk about more deals, could we see them before the end of the year, maybe next year? how quickly do you have the capacity to move? dramapa: during the mylan we faced, there were some issues, but important, we think there is more we can do now and we are looking forward very much to doing additional things. stay tuned. we will have more to say. i will not put a timetable on it, but we do think there is more we can do. scarlet: joe, i want to get your comments on newsweek talked about

still sad he and ian reed weren't here. i can't beat you. i knew you would get him. >> i'm a competitive person. >> jim, we'll see you tonight. "mad money," 6:00 p.m. when we come back, breaking news on impending homes, and cybermonday's winners and losers. >>> good monday morning. welcome back to "squawk on the street," i'm carl quintanilla with sara eisen, simon hobbs, david faber. we close out november today. trying to get back-to-back positive months on the dow for the first time since the spring, not getting off to a good start as the chicago pmi number comes in lower than anticipated. impending homes at the moment. let's get to diana olick with that. >> impending homes basically flat. up 0.2% compared to september. the street was looking for a 2.5% gain. that's a miss. still up 3.9% from october of 2014. this index measures signed contracts, not closings. so a forward looking indicator for closings in november and december. these were home owners who were out shopping in october. you may recall we got a disappointing drop in closed sal