the problem is, iliad is a smaller company than t-mobile. smaller revenues. ,hey made this incredible save they said they have $10 million in synergy, that is the operating expense for t-mobile. aggressive action of a guppy trying to swallow a fish. >> who is in charge? what happens with the leadership? this is a story we will continue to follow. ow is the worlds largest smartphone maker facing a crisis due to growing competition from chinese companies? we break down the numbers behind samsung electronics and we will look at the uncertainty surrounding the company's family dynasty, next on "bloomberg west ." ♪ >> welcome back to "bloomberg west." i am emily chang. largesthas become the smartphone maker and growing its market cap to nearly $200 billion. it has used clever marketing and a variety of products including high to low and smart phones, tablets, to dominate in mobile. there are signs samsung's reign may be coming to an end. it reported its first quarterly profit drop in nearly three ands, net income fell 11% the mobile division repo

will iliad pursue bouygues telecom? vodafone.for the eu expected to agree its bid for ono today. >> thumbs-up from the eu area that is what we are expecting on that 7.2 billion euro offer for the cable operator in spain. vodafone flush with cash after portited that u.s. data that it did hold over in the united states. they have a lot of money that they can put towards deals. it looks as though they are going to be able to expand more in spain. they are gaining some 2% market share. they will have 27% in total. 2 billion euros in savings. this is important. companies such as vodafone are struggling to have a square peg with a round hole. they have to invest. they have to expend on infrastructure. you and i download more and more in terms of data on our mobile phones. they have to invest in infrastructure. meanwhile, sales are falling. we also have the eu pushing for a cut. a cut in roaming charges when you and i travel abroad. it costs us half the price now to access data. that eats into their revenue streams. how do you invest wh

iliad may offer to t-mobile of u.s.at's price depend ntd and the talks were deep enough to wait sand ewhat they could agree with sprint before entertaining that or something they would entertain on a parallel basis? >> i guess, kayla, if you can find a way to take the germans out of their position at the highest possible economics, i assume they have to look at it. the sprint transaction, may well face regulatory impediments, none the less seen as potentially value creating and something eventually both companies may need do. the germans under the plan that they had been hammering out for quite some time, as you say, would still own a part of the combination. so they would still have that economic interest, but if you're giving them an opportunity to cash out entirely at a significant premium, you can't just say no to that. that being said, again, i want to do more. i want to hopefully talk to some people who actually can tell me exactly what's going on. but i would point out it's not clear iliad, whatever the bid may b

iliad is a smaller company than t-mobile.che telekom saying they are not partnering with these guys, they are not engaging with them in any way, and they still prefer the sprint deal. >> quick thoughts from you guys on it? they prefer sprint, they say. thee forged his way into u.s. market and turn it upside down. he looks at the u.s. market and says, this is right for pirates to come in. [indiscernible] >> john legere thinks very highly of himself. >> everyone thinks very highly of him. , is changing the ownership of t-mobile changing how it will be able to compete? >> if you don't get deutsche telekom, it just cannot happen. there is no way. even if they could control the debt somehow. this could be the quickest deal-killer of all time. >> ryan? >> i would agree. earlier, it feels like the copy trying to swallow the fish. not sure if this will follow through. >> he swallowed his japanese mobile operator. >> the difference is the debt. rightnnot go into this now and say, i'm going to add on the debt that t-mobile does not hav

would iliad be a better partner for t-mobile? analyst craig moffet thinks this is good for consumers because sprint t-mobile deal would have decreased competition here in the u.s. >> at&t and verizon would have been benefitted if sprint and t-mobile mernged because -- merged because you'd see four players going to three, and the presumption was from investors, was that that would mean higher prices for consumers and therefore more profitability for wireless carrier. >> that's why you're seeing at&t, verizon down on the side of sprint. sprint is the odd man out, tyler, the company has been pouring bills into upgragd its infrastructure and shedding post-paid subscribers for the past ten headquarters. a lot of sources telling me that sprint bidding for t-mobile was how it was looking to gain scale and really become more competitive with verizon and at&t. we're going to have a keep close eye on that company. >> my first question was who's iliad. never heard of them. >> iliad's a french telecom upstart, and from what ind, they have be

telecom has not been wanted to be bought by iliad because iliad is not offering enough money yet, but all the shares are falling this morning. >> there is still cross-border consolidation happening within the telecom sector here in europe. >> you are right. today, we are expecting a thumbs-up to come from the eu in terms of allowing the 7.2 vodafoneuro bid for for ono. we understand there will be no problems in a regulatory issue for these two combine. the eu has been pushing for a drawing down of market barriers in the telecom space. the head of the digital agenda has been saying, look, we want a single telecoms market. we do not want roaming charges. tuesday, they slashed roaming charges by half. when you and i go to france, spain, italy, our roaming charges should be half the price if we are accessing data. it should be 20% off if we are making calls. that is a problem for telecoms companies because it is eating into their revenue stream. how do these companies pump money into investment? we want to access our videos and get a hold of our e-mails on our mobile phones. they need to

iliad offered $15 billion in cash to buy 55 -- 56% stake in t-mobile u.s.. the same day the t-mobile reporting results. the subscriber topped estimates. the ceo talked with my colleague, emily chang, about the future of the company. >> you know, i have said many times, there are multiple players, multiple options for the company. i'm not going to comment on any specific one. you can figure out, how do you get scales, how do you get spectrum, how do you get capital? one way is to move aggressively. and then various accelerants access. -- exist. you should be clear. there is great interest in t-mobile. we will consider any option that exists for the shareholders. >> that was like the foreshadowing tease of the century. various options for the company, accelerators -- for more on what those accelerators might be, michael maccormack is here. michael, do they need accelerants? do they need capital to build up this network? >> a lot of people question why not organically. they have been doing a great job on taking share. sprint has been a donor for the entire indu

the press release from iliad right now. the offer, $15 billion.s out to the equivalent of $33 per share for t-mobile usa. the equivalent of a 56.6% stake. right now t-mobile trading at about 32 and change, up about 3.5% on the day on this news. on the flip side, seeing sprint, at&t and verizon all down on this news. we're going to continue to dig into these details and get more analysis and bring you that as we get it. scott, back to you. >> okay. morgan, thanks. >>> there's certainly an interesting developing story there and before we continue, let's get a check on what's coming up next on "power lunch." >> scott, thank you. on wall street today, red is the new green. big selloff on the street. major averages breaks key levels. volatility, spiking. where's do we go particular xwleer the key technical levels to watch now and what's an average investor to do? the very best four and five-star fund manage ngs the business how to protect your portfolio and navigate this very tricky market. >>> the big question of the market. inflation coming. when it

iliad does trade, ilb is the ticker for that company.amed after some fine greek literature no doubt. >>> i think we're going to take a short break. short break and come back, more on the market sell-off when we come back. >> yes. >> the dow is down 220 points. more to do, we're back right after this. don't just visit new york. visit tripadvisor new york. with millions of reviews, tripadvisor makes any destination better. the cadillac summer collection is here. ♪ ♪ during the cadillac summer's best event, lease this all new 2014 cts for around $459 a month or purchase with 0% apr and make this the summer of style. machines will be sprayed to be made. and making something stronger... will mean making it lighter. one day, factories will work with the cloud. one day... is today. it can help your business save money. false. the truth is when you compare our fastest internet to the fastest dsl from the phone company, comcast business gives you more for your money. why pay more for less? call today for a low price on speeds up to 150mbps. and f

peygues andetween iliad, we have room to see maneuvers. we are still ready to take apart.hink it's a necessary move for the consumer and investor and country. ne saying that a low tariffs have which is air max a -- have a max and he wants to see an end. a portion of the largest collection of tanks will be up for sale. an engineer bought his first ofk in 1980 and by the time his death he had hundreds of vehicles. sam grobart looks at several on the block. ♪ >> nothing makes a statement like a tank in your backyard. on july 11, you can buy them. more than 100 will be optioned in california. steps away from silicon valley. >> the foundation was formed in 1998 by jack a middleton. he went from a cash will start in the 1970's by collecting more than once a week. >> littlefield has no military background. >> these tanks represent multiple countries, multiple years, multiple wars and battles. the $30 million collection will roll eased to a new home in massachusetts. transporting a fleet of cross the country costs millions and the move.n is to fund while that look intimidating, mo

the original crowd funding campaign was alexander pope's translation of the iliad from greek to english. he found support from 700 subscribers who gave him money and took in four years translating 16,000 lines of poetry. their names are in the first edition of gilead, this is still the version we have today. we have mass media and large companies subsidize in our. there is a long history of this and there's a great future for this. it is still very early on. at this point, harmonious and claims to kickstart and all of the platforms combined. i do think that will always be the case, but i think that this market will continue to grow and interesting things will happen. >> he said that you won't sell the company, you will go public. what does this -- what will this look like in 10 years, mr. ceo? >> well, andrew. we try to take a long view of what we try to do. we want to be a cultural institution. we exist so other people can do things. i'm in service to for people who work with me in kickstart a. this is an idea that we believe in very deeply and i feel like we are trying to shepherd int

shares soaring after reports of a buyout offer from french telecom term iliad.ails still unclear but it is thought that iliad is aiming for control of the company and made an offer to the t mobile u.s. board around a week ago. target shares dropping after announcing a pepsico executive as its new ceo. brian cornwall steps into the role vacated by his predecessor three months ago. it is the first time target is being led by an outsider and walgreen seems to be getting into the car rental business. reports say it is teaming up with hearst and that recent trial at 60 locations has so far been successful. nationwide launch could happen in the very near future. that is the latest from the fox business network giving you the power to prosper. [ male announcer ] what if a small company became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. >> all t

iliad was listening as john said he should be in charge of anything. -- it is resumed trading sprint of it, this sounds preposterous. cap ofrade with a market 11 billion euros. by 1.3 or 1.4, you are talking about well less than $20,000. t-mobile right now is trading at $27 billion of market cap will stop that is slightly inflated you to jump in share prices but either way, iliad is a considerably smaller company than t-mobile. >> we will have to watch this play out will stop we are seeing the market reaction. the fact that sprint is involved is noteworthy. bloomberg has not confirmed this yet. this is news coming from the "wall street journal." >> and we will be seeking comment from the man himself, john ledger. is it simply a matter of economic retreat is or not question mark i'm asking the present -- i'm asking the question and president obama says he's decided to slam american companies increasingly taking advantage of a tax loophole known as inversion and he's putting it in patriotic terms. big is what happens when a american company buys a smaller rival overseas to switch juris

bouygues, iliad, we still have room to see some maneuvers. thise still ready to take game. i do think it is a necessary move for the consumer, for the investment, and for the country. there should be more would more m&a, and that stop the price wars they are seeing in french telecoms. more from the conference here on "the pulse." merkel is inellor china today. it is her seventh trip to china since she became chancellor in 2005, the second day of her trip. for more on what is on her agenda, let's bring in hans nichols -- live in berlin. what else is on the agenda for merkel? trade and there are new bowl lighting plant that will be built in china. -- there are new volkswagen plants that will be built in china. also, what is the latest on this double agent? we will talk about that in a second. you look at the number of potential drivers in china good it will be one billion why since he is in 10-15 years. right now, there are 250 million licensed drivers. a massive explosion. if you look at vw's numbers alone, about 1.5 million cars were sold in the first few months of 2014. th

orange, bouygues and iliad are going to try to bring to the talks right now. down across 3% and 4% across the board. on the top side, alcatel lucent which says this morning after jpmorgan raised its rating on the stock from neutral to overweight. taking a look at the foreign exchange markets this morning, muted reaction from the data. remember the new orders rose in that data. also the employment hounding the level. i wonder whether the inflation department being more muted reinforced yellen's message longer. right now, we've got euro/dollar consolidating. the momentum seems to be towards the top side but, of course, the risk as draghi leads on strength into the trading session. point out sterling, also, 17150 the level. it seems that we do have construction and services pmi tomorrow. unlike europe, the asian session taking their cue from what we saw on wall street earlier. sri. >> that's right, julia. risk appetite alive and kicking here in this region. the asci asia index ex japan at a three-year high. speaking of japan, though, equities markets over there a

the original crowd funding campaign was alexander pope's translation of the iliad from greek to english he found support from 700 subscribers who gave him money and took in four years translating 16,000 lines of poetry. their names are in the first edition of gilead, this is still the version we have today. we have mass media and large companies subsidize art. there is a long history of this and there's a great future for this. it is still very early on. at this point, harmonious and claims to kickstart and all of the platforms combined. i don't think that will always be the case, but i think that this market will continue to grow and interesting things will happen. >> you said that you won't sell the company, you will go public. what does this -- what will this look like in 10 years, mr. ceo? >> well, andrew. we try to take a long view of what we try to do. we want to be a cultural institution. we exist so other people can do things. i'm in service to for people who work with me in kickstart a. this is an idea that we believe in very deeply and i feel like we are trying to shepherd int

the original crowd funding campaign was alexander pope's translation of the iliad from greek to english he found support from 700 subscribers who gave him money and took in four years translating 16,000 lines of poetry. their names are in the first edition of gilead, this is still the version we have today. we have mass media and large companies subsidize in our. there is a long history of this and there's a great future for this. it is still very early on. , harmonious and claims to kickstart and all of the platforms combined. i do think that will always be the case, but i think that this market will continue to grow and interesting things will happen. >> he said that you won't sell the company, you will go public. what does this -- what will this look like in 10 years, mr. ceo? >> well, andrew. we try to take a long view of what we try to do. we want to be a cultural institution. we exist so other people can do things. i'm in service to for people who work with me in kickstart a. we believeidea that in very deeply and i feel like we are trying to shepherd into the world. help of this

and, you know, jonathan shea, the gentleman who wrote in her book, finds it in the iliad and odyssey.o it is in some ways kind of an immortal condition, but it does tend to be ip frequented by the culture -- inflected by the culture. civil war veterans did not have flashbacks, they tended to report being haunted by ghosts, so there was more of a supernatural inflection to it prior to the invention of film and television. flashbacks, as we call them, kind of grew out of the film culture and also the lsd culture of the 1970s because that's where ptsd came from, it came out of the antiwar movement and the left. >> sir. >> i just wondered what you thought about the tact that it seems we've gotten away from the point where they think about the human cost of going to war, they don't take that into consideration. in the past the united states was involved in wars, obviously, kind of unavoidable, the two world wars. and i remember growing up i had a babysitter whose husband came home from vietnam, and i just remember -- it struck me when i started reading about all the iraq and, you know, vet

meantime, t-mobile's road to being acquired turning into a bit of odyssey now that france's iliad made a $15 billion $33 a share all-cash bid for 56% of the company. t-mobile today up 6% certainly bucking the trend in telecom. we end with target. company bringing in an outsider as its ceo for the first time, naming pepsico executive brian cornell to the top spot. target not getting a lift on that news, down 2.5%. kelly? >> yeah, slightly outperforming the market on a difficult day, bertha. >>> let's talk more about some of the problems on the new target ceo's agenda. >> joining us, president of s.w. retail advisor, cnbc retail animalist. stacy, he ran mike's stores. he ran sam's club. he now runs pepsi america. is he the guy for target, you think? >> you know what? he's got a really great background. however, there are a couple things missing on the resume that are really important to target. number one, an expertise in apparel. and the second one is an expertise in the home business. that's really what has differentiated target and really made people pay up and pay a premium to go the