shire agreeing to acquire baxalta. shire shares trading over here, down a bit.hire expects the transaction to close mid 2016 it sees more than $500 million in annual synergies within three years. if you recall, baxalta was a spin off from baxter. >> when? >> july 1st. july 1st of last year. they were never able to get a shareholder base, because they were a spinoff, it takes a while to develop ownership. these guys with their offer, they came public. they approached them ten days later. they came public early in august with a bear hug. back then, it was all stock. we were less than sanguine on their prospects, it was 0.1687. some defenses there. six months past, now it's $18 a share in cash. and 0.482 shpg. that ustock, let's keep an eye n how that stock trades. >> shire was up. >> was. the call began at 8:30. we'll get headlines off of the call. the key certainly is that synergy number, shire is moving back -- is moving to the uk. isn't that funny? from dublin. they'll go move to the uk. ireland to uk starts happening now. apparently the uk's tax rules are gett

baxalta turned down a lower number from shire in the summer.: saudi arabia cutting ties with iran after an attack at the saudi embassy. the head of global research tells us what this means for oil. >> sally will have to choose between cutting production more making the price $50 a barrel, which is a more sustainable while price for the budget or ultimately have to devalue. the choice is ultimately saudi's. brazil is headed for its worst recession since 1901. that is according to a survey of economists who predict that brazil's economy will shrink almost 3% this year. policy makers are trying to control the fastest inflation and 12 years without slowing the economy even more. scarlet: in london this year, investment bankers are expected to get on us is only a fraction of what private equity employees will receive. that is according to a survey from a recruitment company. london-based bankers expect to get about $36,000 while private equity employees are counting on four times as much. that is your global business report. for more stories, go to

both companies negative, shire down 7%.combination will make the companies a powerhouse of rare disease treatment. let's bring in drew armstrong. we indicated that this was going to happen, so tell us exactly how this got through. : this has been in talks for months. i think back in the summer shire came out saying it had interest in acquiring baxalta, when it had been out for, i think 30 days? they had a time of cash. and the offer was raised by saw. 2 billion from what i cash is the main consideration here getting this thing done. betty: what does baxalta bring to shire? they, like shire, have gone after specialized treatments for diseases that affect small numbers of people. can be scientifically difficult. it's not like they're going some high cholesterol or common cancer. when you go after diseases that have a big- do not population of patients, you can command higher prices, it's a little easier to sustain as a business model and is immune from the pricing pressures we have seen from the rest of the industry over the

news of shire's takeover came out in august. this past monday we got confirmation it's going to happen. as part of the transaction baxalta shareholders are getting cash and shares of shire. put it together and the deal is about 44 bucks a share. it's just ten bucks off its lows. as shire goes higher, baxalta shareholders will be getting a suppose you have been holding the shares. how well have you done including dividends? you got a 12.3% return since the split was announced in 2014. maybe you think that's not much. when you consider the dow is down roughly 2% over the same period and the s&p 500 is up a little over 1%, it's clear that the baxter international breakup has allowed you to substantially outperform the averages. if this market ever goes higher, i think that will look even more impressive. what other recent spinoffs might be takeover candidates? i'm trying to put optimistic ideas out there so you don't say cramer has given up on the market, because i haven't. remember, it's easier to acquire a company than it is to b

--urke shire hathaway shares and burke shire hathaway shares 's worst performance since 2000 eight andorming the s&p 500. seattle -- noah from seattle. the long-term investors have enjoyed some extraordinary gains under his management. >> that is exactly the case. there are a couple of factors. a it ironic, but a guy known for his stockpicking ibm and amax were significantly down for the year. you also saw some challenges in the operating earnings. the underwriting profit was down about 40 something percent. there are some real challenges. you think of warren buffett as the greatest investor of all time? there are some hedge fund managers who are very critical. phases -- >> market phases change over time. we are in a different environment. i think that some of those stocks are becoming tough with them. that was going next to warren buffett. it was right after the 1987 crash. you have to buy everything you can. over the course of your lifetime you are going to do great. i remember for sure. central engine of their insurance business has been great business over time. have had great succ

mark: is it about expanding the global reach for shire? shire is a big player in one sector.his gives it a potentially strong leg in another rare disease area which is him a few you. it's difficult to see a specific can go or asset shire after that is a perfect fit. is rare diseases gives them a perfect fit. leadershipaxalta's in hemophilia is being challenged. sam: yes, they are coming up with products in this year and 2017 that will potentially compete. shire could get from this deal could be -- the aunt 2017, consensus estimates are a little lighter for baxalta . the reality is there could be challenges there. hasshire, i'm assuming, done its homework and is looking and thinking they would be able to use history and the presence that baxalta has and the space to maintain a major market presence. mark: is it going to happen this week, yes or no, sam? sam: i don't know. it has been going on a long time. jpmorgan, the biggest health care conference is coming up next week or it if there was a good time for this deal, it would be before that. to see you.reat i know that you wer

since then shire has been trying to bulk up. they tried to buy one company for 5.2 billion last year. that's 75% of their own market cap. >> yes. >> but at least they've removed themselves as being the takeover target. >> interesting, too, we were talking about a share deal. now there's a cash component coming in. shire originally feared there would be negative tax implications. it seems there is advice that they could get around that. we could see a cash component with this deal as well. >>> meanwhile, another stock moving is the determine man sports brand of adidas. more than 2 billion our rows of sales. heiner said he was maintaining a positive outlook of increased sales and earnings and that he was, quote, confident that order books were full for the first half of 2016. it's interesting with adidas coming with pretty solid results coming from their top competitor, nike. really putting the emphasis on china. we talked so much about consumer demand in china. if you look at nike, adidas, most of them seem well. >> niko results

drugmaker shire is in advanced for $32 buy baxalta billion in cash and stocks.may be announced as soon as this week. thank you very much indeed. let's talk about the drug story. let's talk about what is happening with shire and baxalta . to a price nowup where it makes sense? >> yes. our model suggests that pushing up near the top end of the range, it will be difficult for of itto get much more out over the next few years. it depends how much cash they can get out of it, how much synergy i can get out of it. i have well over 10,000 employees. there is a lot of opportunity there. day, it looksthe like we are getting to a point where shire will find it difficult to get an enps lift out of it. how big of a deal is this for global pharma? sam: this is a big deal. they made their first approach at about $29.4 billion. thatmight have changed is the number is bigger now. not a huge amount. a little bigger. there is a possibility of a cash element which may be more tax efficient. that is for the lawyers to work out. we live in a different world. we had the chinese stock

bloomberg intelligence director of research joins us talk about shire.in talks for a takeover. oft is according to people -- family with the matter. thank you so much for joining us. stock,look at this what's changed? >> nothings changed yet. this is a rumor. tos a slightly higher price a new reality for 2016. this premium is putting in premium. it's about 25% higher than the median for the year. then if you look at the growth profile and it does not look as rosy as the pair group. -- here group. maybe they should take it. francine: there was a lot of m&a in the pharma. the pressure is piling. is it a big deal? >> it is. you get potential he the pfizer deal. whether or not want to take the cash for the shares. it's easier growth and lower risk. it is a leader in the hemophilia in -- space. be a balance. people are getting into a more broader based business. this is one that is focused. francine: thank you so much. stay with bloomberg. plenty more is coming up. francine: european stocks fall. the yen gains. saudi arabia cuts ties with iran. the expelled d

shire dropping nearly 9%.t comes on the same day as the biggest health care investing event of the year. meg fir rell was there and spoke with some of the industry's major players. >> reporter: tough start to the jpmorgan conference this year as kernds in the industry over drug pricing really seem to weigh on stocks across the industry. we caught up with novartis ceo joe jimenez to talk about that issue here. >> if you think about cancer pricing, you have to think about the value that we're creating. remember, this is a deadly disease. innovation has to continue to be rewarded or we're just not going to be able to see the kind of breakthroughs that we've seen in the last -- even just the last year. >> reporter: there was a lot of news coming out of the conference including the announcement of the $32 billion acquisition of baxalta by shire. that had been anticipated for some time. the news coming today. both stocks declining in this sort of overall environment of negativity in the sector. we also talked with p

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shire will be combining with backs all that. xalta.h ba shire has been inquisitive.like $18 in cash per share. you see they're how the shares are doing in the premarket. shire is an irish company that trades in the united states as well. it looks like it is a done deal. we have reported that it might be closed but there was a lot of back and forth. david: the markets didn't interfere. let's have tom re-ask the question. bill: i've got it. there's no question that the world has changed its volatility. i don't think it will be reflective over the next six weeks but it will be tough. it is based not just around markets but also around china and the difficulty with their economy and the debt situation, there is real reason for what is going on in the marketplace. tom: i would respectfully suggest that the daily family looks into giving confidence to an economic system. larry is very big on the need for confidence right now. judger policymakers to confidence. how confident is your america? i have very confident. you have to say that the united states is much more strong t

shire, and baxalta.agreeing to a deal valued $32 billion cash and stock. concerns on the cost of crude oil. look what crude is trading at right now. we're off half a buck a barrel. trading below the $32 mark. this breaking news overnight, music legend david bowie has died. a statement posted to his social media pages, that bowie died of an 18 month battle with cancer. outcry and reaction around the globe was really overwhelming. hard to find somebody who was not influenced by this man's music, this man's life. he turned 69 on friday. the same day day he released his latest and his last album. >>> moving to el chapo, he is back in a mexican jail. was it because of actor sean penn? penn interviewed him for a story that was published in "rolling stone" over the weekend. according to mexican authorities, that contact meeting in october helped lead to el chapo's capture. the grip and smirk. i will say that all day. mexico formally starting process to extradite chapo to the u.s. preet bharara, the u.s. attorne

shire is set to become the biggest maker of so-called orphan drugs for rare diseases.dennis lockhart says he is all for continuing to tighten monetary policy this year. he also says the global selloff inequity markets is unlikely to affect the u.s. economy. he says he expects the economy to expand at a moderate pace in 2015, pushing down unemployment, and raising the 2% target. alix: let's head back to the markets desk where julie hyman has the latest. taking a closer look at the south african rand, which many are calling a flash crash today. this is something market participants have to get more used to, these unusual market events. this looks like a flash spike because we are looking at the dollar versus the south african rand. this happened right at the beginning of trading before finishing the day lower. are at the we moment. the south african rand at a record low. that tracksrrency very closely with what we have seen in commodities. about 18% of the country's -- going back five years and looking at a chart of gold and the ranch together, gold is in gold and the la

according to bloomberg, shire is in advance talks to acquire becksalta for about $32 billion in cashtock. reports say the two companies could announce a deal as soon as this week, though final details are still being discussed. shares of backsalta rose more than 5% to 41.17. shire down 3%, as you see there. >>> shares of two gun makers rose today as president obama considers an executive action on gun control. the president met today with attorney general loretta lynch to discuss what measures can be taken on his own authority. he's scheduled to deliver remarks on reducing gun violence tomorrow morning. an executive order would not require congressional approval. smith & wesson ending the day up more than 5% to 23.28. sturm ruger up for the day at 61.39. >>> well, data storage firm emc plans a round of layoffs as it aims to cut annual costs by $850 million. the layoffs come as the company prepares to be taken over by the computer maker dell. shares of emc down slightly for the day to 25.59. >>> a pair of analysts giving lululemon an upgrade today citing strong company fundamentals as

drug maker shire bought megadrug dealer. treatment for rare diseases is a lucrative area in the drug industry. following a last minute comeback. the s&p rose 1. the nasdaq lost 5. if you think your ride in an uber car is costing less. you are right. they cut prices in 100 canadian and u.s. cities. in some areas, this is the third year in a row they cut fares. uber says it has less riders during the slower winter season. >>> ringling barnum is retiring elephants a year early. it comes amid scrutiny, the circus announced they would be retired in 2018. circus officials realize they can do it sooner. they will be retired to an elephant conservation in florida. >> jill wagner at the new york stock exchange. thanks a lot, jim. >>> still to come the golden globe moment that exploded on leonardo dicaprio reveals his reaction when lady gaga walked by him. title. >> here's a look at today's forecast in some cities around the country. >> sales of the late david bowie jumped on saturday. his avatar shot to number one on itunes top monda

all of a sudden shire came out and said we would like to buy you.ver even had a chance to figure out where their new office was. we are now six months away, they now have had time to talk to their investors, and as we enter the new year and looks like there will be an attempt to get this done. was an all stock deal last time, and now this is a stock and cash. in versions getting these tax deal to work, what is this play? when we think about the cash component, whenever you add cash taking away risk from the target companies investors. instead of getting you stock of a company that will be acquiring all of your put bets on this deal, here is cash right now. mentioned the text component. that is a huge part of what is going on here. sultan, a u.s. company, subject to u.s. tax rates. most companies can pay less than that. located outside the u.s.. only paying about 16% after the merger. you are taking weight percentage points away from the tax rate, billions of dollars of profit a year. that is a significant amount. if you are a foreign buyer, the tech

they saw a move by shire to acquire another company. joining us, the president of research and global development for sanofi. thank you for joining us. i want to talk about one of these deals. an extension of an agreement with work bio, on and in college he deal. tell me what this deal is about. we cocreated this ourselves for years ago with third rock ventures in boston. the co-creation was related to the fact that they had a platform where they could look at the genome of the organism and look at unique molecules, and they found that some of these molecules can act on cancer targets. that is where we find this deal. touching another area, antibodies that have two actions at once. grow and begoing to a major need and we are making catch upeed to do to and leapfrog, if necessary with our own internal assets. when you say the -- betty: when you say the target is the genome , as far as differences with what other people do, what does that mean? products comethe from nature. we can nevers figure out what organisms come from good treatment.

drug maker shire bought backsalta. treatment for rare diseases is a lucrative area in the drug industry. >>> stocks here on wall street were mixed following a last move minute comeback. dow gained 52 points. the s&p up one. if you think your drive in uber cars are less? yoyoare right. they cut prices in 100 canadian-u.s. cities. in some areas, this is the third year in a row uber cut fares. it depends on the size of the city. it never boosts ridership during >>> ringling is releasing its elephants a year early. the circus official says they realized they could release them sooner, so they will. all of the el elephants will be released to an animal conservation in florida. >> thanks a lot, jill. >>> still to come, the golden globe moment that exploded on social media. leonardo dicaprio reveals his reaction within lady gaga walked title. >> h here's a look at today's forecast in some cities around the country. bowie's newest album jumped on news of his death sunday. the album shot to number one on itunes' topple a bums m

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shire first made that offer back in august.ny said the deal should add to shire's value. >>> let's tell you about a few of the other stories investors will be talking about this morning. macy coming under pressure from an activist. star board is urging the retailer to strike real estate deals. the activist investor things macy's stock could trade as high as $70. "wall street journal" reports that kohl's is exploring taking itself private or breaking up the company. shares of the retailer are down 40% from its peak back in early april. alcoa won a contract from general electric aviation unit. >>> uber is cutting prices to more u.s. and canadian cities in an order to boost rides. the size of the discount depends on the city. is this third straight year uber cut prices in january. those drivers are unhappy because there's no contract between them they just get told. >> this is how much you take for the ride. you'll get more rides because of this. >> the auto world centered in detroit for the next couple of weeks. phil lebeau joins

ramping up her criticism of senator bernie as s is now locked ia bitter battle to win iowa and new shire. sands leased new ads showing s movement is growing. c's edward lrence picks up our coverage of e campaign trail from washingtod-c. nat sot hiary clinton targeted t het of senator bernie sanders suort.. young people. today the form secretary of state spoke colleges in iowa... sot hillary clinton / d pridenti candidate :09-:19"in th, ere is a lot to like about some of his ideas. but 'in theory' ist enough. a president has to deliver in realy." decidestudents are listening. sot gabriel schabilion / spson college sophomore 2-8 olitics as usual - is at what our country really needs? or is what we need wh bernie isntroducing? kind of an overthrow of the establishment. super: perborough, nh :32 sanderspenthe day in new hampshire.. where hes leading in the polls sot sen. bernie sanrs / d presidential candidate :33-:42 "our job is to creatan economy thatorks for working famils and not just a handful of billionaire mpai contributors." super aly on screein upper corner- bernie 2016 in a new pol

is he on his way to the shire? >> all very "lord of the ring >> yeah, yeah! [ laughter ] >> i love it! [ laughter ] >> this is so tand it. >> now he has a precious stone. >> but he faces yet another challenge.person on a horse. oh, no! the horse is catching up to ian. complete -- and he then -- another screen pops up in the lower right-hand corner we see as she's seeing this ring on is actually walking up right behind her. gets down on one knee and proceeds to propose to his girlfriend in theace where he asked her out for the first time three years ago. >> oh -- >> you can tell she just loves him, loves the way hend they're obviously fans of these movies, because she was totally into it the whole way through. >> good job, brother!h college guys suited up for a rap song, and it is loaded. buy you a medicine r dudes explain what it's like to have the wep heavens black. >> ah! >>> a popular hash tag on twitter and on vir's sensations were born. biology major for ccu okay and neurology 101ead >> ah, they're fly. this is terrence terry and jonathan all students at

baxalta is under shire's rare disease portion of the company. there you go. it's interesting to see whether they'll be pushing through, gaining market volatility or trying to scale back. >> you are totally right, but also the rising interest rates and also the continued crackdown on tax aversion. it's a question mark here. >>> let's move on. the other big story we're following, the dialogue semiconductor company saw revenue rise by 17% at $1.3 billion in 2015 but is now forecasting single digit growth only for the upcoming year. no surprise about this really because we also saw dialogue semiconductor cutting their revenue guide. last week we saw the likes of dialog are themselves quite heavily on the reports that apple will be cutting the ord s orders. >> a little bit of a step back and then it dials up. >> the head of electrolux is stepping down. mclaughlin's retirement comes a month after electrolux's attempt to buy ge's appliance business that collapsed. the deal was blocked by the u.s. justice department on anti-trust grounds. >>> let's talk a little bit