It is and thats because it has his back up against the wall. A tremendous amount of scrutiny not just from its Investor Base that mens wearhouse has taken this aga to the delaware courts where it had it has accused joseph a bank of measures that are inappropriate and defending itself against hostile bids by mens wearhouse. Accusingrhouse is joseph a Bank Management team and board of putting up high barriers to a deal such as a poisoned pill, such as creating a deal with eddie power to make it too big for mens warehouse to take over. All of those things mens wearhouse says is evidence that bqank is breaching its fiduciary it is by not coming to the table. Joseph a bank is forced to come to the table at this point and reconsider talks. How much more could joseph a one stock we are watching bank really debt out of mens today is google. Wearhouse . The company has rolled out my sources say that joseph a google fiber. This is the highspeed Digital Service network in solo select u. S. Cities, provo, utah, bank probably would not have invited mens wearhouse back to the table if it were not kansas city, and austin, texas. Entertaining a deal at 65 per share. Google is testing the market for at whichs the price this ultrahigh internet streaming. The parties can come back plans for atlanta, salt lake, together. Of course that would mean that san jose, and other cities as joseph a bank would have to walk away from its yield to i eddiebauer and pay a breakup fee big Cable Companies consolidate. Other cities want to get in on the action. Which is also a source of could google fiber take on a scrutiny. It seems like a big mess at this broader role in the consumer point. Where does this leave joseph media market . What do you think . A bank us current dance partner, come a majore if you will . The most competent a part of player in the media market . The deal after the two parties i dont think they will for a while, but they have been quite successful as the beginning. It started out as a funny agree on price, it might be antitrust. Joseph a bank could demand some project. It was not clear if they wanted to do this as a business or they high protections from mens ifrhouse to make it whole just wanted the Telecom Companies to move faster. Rex blaine how much faster this regulators do not approve of this deal and that in turn may explain how much faster make mens wearhouse walk away from this deal. It is very far from being done. The services. Rex it is about 10 times faster whath a bank could amend on average. It might be 100 times faster is called a hell or high water provision is very unusual which would force mens wearhouse to depending on your service currently. Close the deal with them even it is great. You take a fiber line directly though regulators did not give it a sign off. To somebodys house. Which means you have to wire them up the telephone poles, dig that is an issue of contention and we will have to see how it them up the street, and then lays out over the next couple of take the line into somebodys weeks. Thereot of merger news house. You have to have a city that are a lot of activists agitating these days. Wants to do this. The city has to want to do it stay with us because i want to ,alk about the deal environment and they have to give google or another company doing it special access. This onslaught of investor activism we are seeing. It has to give it the right to deduct the streets. Sweeneynging in paul it is a very complicated regulatory process. And you get clusters of people near each other who all want it. And Merger Arbitrage strategist. You need to have a neighborhood with at least 20 houses. It seems like a lot of cities lets start with joseph a bank would like this. In this saga that is going on in and are doing but they can to ingratiate themselves with the mens retail sector. Google. How do you become the city that is next . There are a couple of things. It is interesting they seem to be going backandforth. Ultimately, who wins . You need to have people who are excited about it and know about ive been covering this from it. The second thing is, google wants a lot of regulatory wheel the beginning. Greasing. I am more than aware of what is kansas city gave google a lot of going on. The Biggest Issue here is the perks and incentives. Timing. I think what google is doing is to say, hey, do you want google when you look at the release, it fiber . Youve got to give us a little said we need to do this quickly. Bit of this and that. If youre going to give us your the other best offer, give it to us right now because if youre not, we will close this eddie bauer d thing to overcome is the other Telecom Companies hate this, and eal. They have a lot of power and control over City Councils and that is what is happening now state senate. And they need the Due Diligence to increase the price to 65 and it worked so well in kansas city that they are working to ban it maybe more. In the rest of the state. Could this mean that google it is not 65 in cash. Replaces the Cable Companies . It could be stock. Mens wearhouse has the door that is what some people are thinking about. Open to close this transaction. The started as a small project, activist fieldhe possibly just to embarrass the Cable Companies, to point out how terrible Internet Connection is in his country. With ebay and paypal. Now it is growing. It could be a standalone business for google. Now with the merger of comcast is rattling the cages and Time Warner Cable with a relaxation of Net Neutrality on almost a daily basis. Rules, theres a lot of fear and he was on with me a couple of a sense that there needs to be against pushing heavily more calm edition in the market place. And google could provide that. The paypal spinoff. More competition in the one thing he is trying to get marketplace. And google could provide investors to Pay Attention to is that. Nick thompson, thank you very the composition of the board. Much. Lets take a quick look at the in april they will have an annual Shareholders Meeting and market. The s p is having another record high. There will be two board seats open and he says there are the fight the bad news in the conflicts now with the board of economy, that the Fourth Quarter directors. He says this is one of the only grew 2. 4 in said of the reasons why they have not spun. Stimated 3. 2 off paypal. Nonetheless, 1859, a new high on do activists have more swayed the s p. Nowadays . It depends who it is. Coming up, the Academy Awards clearly we have seen more are on sunday. Activism coming out of the hedge you know them as the oscars, but fund community. A 15 l young Dollar Hedge Fund have you ever heard of the site tech awards echo they are also can be heard quickly. Foron and they are he haso have carlicahn, innovators who dream of cool stuff in films. And they are awarding a lifetime a very big bullhorn and is able to get his message out there achievement award. Quickly. What do you do if you are the Jon Erlichman has the story. Company . Ebay is fighting back and many saw paramount companies have said lets try to transformers dark of the mood sothebys is an example dark of the moon you may where they try to work with the activist. Have seen the scene with cars ebay is saying no. It is mindboggling to flipping. Believe what the company is doing. Even school buses. They are continuously attacking the device that makes it happen is the pneumatic car flipper. Him. Musk, the cofounder of he dreamed it up when he was paypal, has said you need to separate the company i cofounded. Helping michael bay shoot armageddon. Scared of exposing heres how it works. The car is placed on top of what looks like a floor jack. Their lack of substantial growth the difference being, it is relative to paypal. Loaded with High Pressure they want to keep this and hide nitrogen. Intou want to get that air some of that stuff. That cylinder as fast as you can and as much as you can. Are activists playing a vital that is what makes it work. 3, 2, 1. Role in this case . He says nobrainer. He dumbs it down. That is how you flip a car. Before car flippers, the these two businesses do not industrys tool of choice with a belong together. Cannon. Look at what they have done in the past. Now they can do it around the globe for a couple hundred bucks a day. Musk he dumbs it down. Cannon in a car, that will cost you 2500 to produce. Look at the valuation. He dumbs down his comments not you times that by 25 or 30 cars might get expensive. Only for the institutional shareholders but the retail rex and if you really want to get fancy, people saying this makes sense to me. You want to get as many you take a cable and you wrapped around the car and you put that back 200 feet, and you people on board as possible . Thats it. Pull on the highspeed accelerator along with the this is a technique to do it. Flipper. It will just pull the car. What do you do with the car once you flip it . Perltz is doing the same these cars will go to a thing. Less yogic as be record or something and probably in four more years, they may look like a bobsled. He has been and more like carl icahn nobrainer. You can catch all of the he likes that phrase. Latest tech in media every day ists going on with ebay at 1 p. M. And 6 p. M. Eastern probably emblematic of what we only on bloomberg west. Stay in the loop. Will see from activist investors Going Forward this year. They spent a lot of time last year asking companies to return capital to investors through dividends and buybacks. Whats going on this year is that they are looking for him and they at tibbetts he m a activity to spur activity for shareholders. They will want to vest teachers. They have seen the stock market they want divestitures. They have seen the stock market at a rally and that of ready fair valuation and possibly at a peak. What they will do this year is potentially Pressure Companies and management teams to spin off assets and we will see this potentially spur some economic and m a activity as well. Is this good overall for the economy, this kind of activism . I think it is. The open market we have in this country, uc see activists come into fine situations where there is perhaps hidden value. Times, it works well. Sometimes, they picked the wrong target. Perhaps ebay might be the wrong target. Why is that . Generally, the company is performing fairly well and paypal clearly is the growth story of the business. I think the longterm growth of ecommerce overall is so positive and so strong that they will create they have an argument that they can create shareholder value longterm and they have an argument that paypal helps them grow their overall business. I have looked at some of these numbers and when you look at paypal, it is growing offbook , 70 is off book and that is growing 30 . There is an argument that is that it is expanding outside of ebay and growing faster outside of ebay. Mensts correct, wearhouse was the trigger. Dont they have an investment in both companies . They do and when they say something, they can tell each Shareholder Base that this is what we want to do. We want to combine the companies. Getting back to activism in general, there is low hanging fruit in the market right now. They have to go and climb this trait. You need activists to do that and thats what they are doing. If it is good for the economy, it is good for capitalism and the stock market. It is not good for jobs. When this happens, there are job cuts. If mens wearhouse and joseph a bank merge, they dont need that many stores that that many people. I want to thank you both for being here. As well. Tina alesci moving on ukraines new Prime Minister knows he is not destined to be the countrys most popular guy entrepreneur elon musk, shares anytime soon. He will have to reside over some of tesla motors are up 619 in pretty painful reforms while he the last year. Deals with the russian menace an attempt to get the country back on his feet will stop on its that is the best performance by feet. Any automaker in the last two decades. Tesla sold 20,000 of its model s is there any sense that things sedans last year and the company are improving their on the ground now . Hopes to boost sales by expanding neck smut. Yes, compared to the another mover and shaker is microsoft chairman john tensions weve seen flaring in the crimea region, here in the thompson. Capital, things are relatively he says microsoft has plenty of resources. Calm. Noise me, the only major he spoke to us in singapore. The issue for us is about going on today has been chopping wood. Focus. Protesters seem to be settling one of the reasons why we chose in for the long haul. Sasha nadella as their ceo is he they have been chopping of fire were to keep the 10 swarm. It is a pretty to keep the has a Strong Technology back rent and understand exactly what needs to happen to move microsoft forward. 10th warm. At the white house, a couple it is a pretty strange scene. The their cages reminiscent of of real movers and shakers, scenes of the barricade is president barack obama and the Vice President appeared in a video as part of the lets move reminiscent of scenes fromles m iserable. Campaign. It is aimed at fighting childhood obesity. But you go to the Shopping Mall they jogged past the rose and people are buying jewelry, garden. Sitting down and having coffee, no records were set. Meanwhile above them it is it was not a big surprise. Almost like a scene out of a movie set. Considering what they were x you say people are buying wearing. When we come back, we will go things you say people are live to the ukraine with a look buying things. Ive heard rumors of a cash crisis in ukraine. At how far this country has come this week and what lies ahead as it are these reports true . Are people having a hard time we go into the weekend. Getting to their money echo ratings fallol to their money . I think that is true. Flat. Stay in the loop. A lot of the cash machines are simply not working. I ran into a lawyer just now with one of the banks and he said they are handing out foreign currency. He was standing there with a series of cards just trying to drain the atm. Pretty extraordinary. You have also spent some time with the militia that is trying to control the city. How is that going . Seemingly ok. Not a lot of violence going on, so in that sense the crime seems to be under control. Some of the group seems to be a little more hard right than you might necessarily want. They are not particularly friendly with a lot of the other militias. There may be some tensions creeping in there. But otherwise a very friendly community. They are all volunteers and they are not getting paid. It seems to me they are intent on rebuilding their country. We will be talking to you again this afternoon and on bloomberg tv throughout the day. That does it, everyone, for todays in the loop. Pimcosp. M. , strategists will be with me. We will take you through the close. You will also get his revelation this week that a rift between bill gross and Mohamed Elerian may have been overblown. Its been a long week in ukraine. The countrys new Prime Ministers said he will ask russia to extradite the former president yanukovich. Do you get the sense that things are quieting down there or are we going to be looking at a situation where this is a divided country with part of it effectively going to russia and then the eu . When it comes to national integrity, it is crimea. Troopsery worrisome that come a presumably russian troops, have secure the two biggest airports on crimea. Why would they do that . The natural purpose would be to bring in troops. , the government declaration was very good. Ive never seen such a good announcement coming out of kiev. The government has been formed and should be able to start working with its own national integrity. We have a reporter in kiev it is 56 minutes past the hour, and that means bloomer television is on the market. And i know youve got a chance im scarlet fu. Exchange traded funds are to sit down with the new ukraine tracking developing markets that National Security advisor. What did you hear . I spoke to this man last led outflows into etfs yesterday with almost 200 night. Million of capital exiting the funds. Investors have withdrawn 11. 5 i asked him about whether he was concerned about Russian Military billion from emerging market activity nearby. Etfs so far this year. Yes, i am. About oneout plus, billion of that coming in the last five days alone. I am worried about it for sure. Cristina alesci spoke with also, the capture of the guests about Frontier Markets government in crimea but units which, in my opinion, were sent earlier this week. From russia, from moscow. From russia, we see an take a listen. Aggressive method of carrying emerging markets, that is a out Politics Today toward ukraine and we could have served misleading phrase, really. Right now, 85 of the people on the globe live in the emerging their attempt to divide ukraine or at least take sebastopol or markets. I did not say crimea. Would you call for nato minority markets. Gdpll right, but 55 of the support against russia if required . Yes, for sure. Of the world is in the emerging we think we are owed from the markets. You cannot just ignore them. United states and britain. Ignore them because they are nato is a guarantee of safety in small countries. These are emerging as economic the black sea region. Of course, we are sure about powerhouses, like china. There will still be a sin downs and the fluctuations might be nato and it has been announced greater in some emerging they have their own vision him markets, but in the end, the amount allowed a russian greatest growth will be in the federation to create conflict. State andcretary of emerging markets. The greatest opportunity will be in the emerging markets. If you avoid the emerging markets, you will be lef