. >> we have michael pearson as well. we have both on to explain this. >> i've coume to different conclusions. i finally realized i don't think david soakle did anything wrong at all. he says this is an undervalued company. i want to buy a lot of it. he says you know, you should take a look at this company. it's really cheap. they noticed it's cheap, too. they decided to buy the whole thing. he happens to make money. then i thought the difference with ackman, both of these companies are able to decide that allergan is cheap but for a minute i thought maybe it's front running because ackman agreed with the company. he knew beforehand they were going to make an acquisition. >> my question is do other people know that valeant had been trying for more than a year to try and buy this. >> allergan was in play. if ackman is going to remain an owner of this company and help run it like he's been doing, like an activist investor, what's the difference between two companies deciding that they want to make an acquisition together? w

you need to know the setup to this is michael pearson, a former mckenzie consultant, is well known for his cost discipline. so it was a pretty funny story. >> kate kelly, thank you very much. a great one. i'll buy you lunch anytime, kate. >> reporter: i love it. i think you may still owe me money from an herbalife bet last year. >> i think he owes me money. >> he'll need more than $20 if he's buying you lunch. >> we'll go someplace fancy. kate is worth all of that and more, joe, even if you don't think so. >> bill should be a couple hundred dollars easily. >> i saved terranova from that one. >>> did traders know something in advance of the allergan news? jon is joining us on the phone. did you see unusual activity? >> indeed, we did. this was even better than that, steph. normal activity, sully, is less than a thousand call contracts a day. from the time mr. ackman started accumulating over-the-counter, which aren't exchanged, the volumes started picking up. yesterday, they peaked at 8,300 contracts. so let's say roughly eight times normal volume. they were buying the 140 and 150 calls

now, the unlikely partnership happened this year, ackman and michael pearson struck up a pact on allerganat happened on the 25th. and you're seeing a stock price here, a purchase of 174,000 shares kicked things off. then 122,000 shares the next deal, working out to be $76 million worth of allergan shares in just two days, ackman switches up the strategy and starts to buy options to increase his share of the stock at allergan. by april 11th, he controlled over 5% of the stock which was important because it meant that ackman had to tell regulators about this position within ten days. but he didn't stock there. he kept buying the options and had a stake by april 21th, for your numbers fans out there that is a 9% worth at allergan's stake, on the day that they announced the hostile bid. a takeover like nothing we've ever seen before. and that is what makes it snow unique. >>> and a potential deal described as bold, raising questions about the potential conflict of interest. but no matter how it is described or the types of questions it has raised we need to point out that this maneuver is leg

the unlikely pairing kicked off in february of this year, ackman and valeant's kreismt on the michael pearsonct. now, the buying of that stock started on february 25th. what you're seeing here is a chart of the stock price behind me. it started off with 174,000 shares that they bought, another 422,000 shares just the next day. it worked out to be around $76 million in terms of allergan shares in the two days. the team switches up the strategy and call options among other things. remember, now, call options are simply contracts that allow you the right but not obligation to buy those shares at a certain price in the future. now, by april 10th here, the duo built up a stake in allergan. the next day they controlled over 5%, and this is important, because it meant that ackman had to tell regulators that he had a stake in this company within ten days. but ackman and the team didn't stop there. they kept buys thor call options, added another 4.7% stake by april 21st, the stock price climbs. for you numbers fans, that's a 9.7% stake in allergan worth nearly $4 billion, so a very big deal. that's th

would be received for cash as well as a large majority of a valeant shares, a lot of talk from michael pearson today who's been successful in dlirg shareholder returns about the durability of his assets, the products, the fact there's less of a patent cliff that this there is for many other similar companies. the emphasis on sales as opposed to more traditional areas like r & d. then we heard from big ackman. he made interesting points about why he stayed away from pharmaceuticals in the past, but why this deal was attractive to him. let's take a quick listen. >> in pharmaceuticals before. why is that? because the typical pharmaceutical business, you have products constantly coming off patent, investing huge amounts of money on speculative r&d. price pressure, but then i learned about valeant. what we like is it fits our paradigm. a business with durable products and brands. the persistent cash flow we look for. >> reporter: so a lot of attractive points for bill ackman. he's betting very big on this. 30% tied up in the combination of his investment in valeant, and also in all elergaallergan.

athletes the 49ers michael crabtree was w- his own jersey and sergio romo making sure to take care of his carb intake. the shot blocked by quick and the puck bounced long and pearsonssists toffoli and eight minutes in the kings with a 1-0 lead. in the 1st period, the thorton shot won't go and long deflection leads to another los angeles opportunity, with bruin to kopitar. the kings put it away on a power-play in the 3rd. carter's shot is off the skates of stewart. can't really say you with unlucky when you lose 3-0, but the sharks didn't get many breaks in this one. that was it for antti niemi who was replaced. and the sharks now lead 3-2 in the series and now swings back to l.a. where san josi will try to wrap it up on monday. fred, is there a tension among the sharks with most of margin used up? >> reporter: there is more than one guy frustrated and testy in the locker room, but not one could explain why they started out so slow on their own home ice as a matter of fact? you could tell they quickly got flustered and just five minutes left in the 1st period, they were already trailing l.a. when sharks defenseman edwards takes