Here are the top stories we are watching. French air accident investigators looking into yesterdays german plane crash saying voice recordings survive the impact. They say this will lead to clues in seeking to explain the tragedy a full analysis may be months away. Graces Central Bank Governor speaking in london. He said greek banks must actively manage stressed loads. We will have more later in the hour. Facebook opening its messenger chat application. The app will be opened to businesses to communicate with customers and to make reservations. We have got less than an hour until the close of trading. We are looking at some of the action. We are seeing a selloff that seems to be accelerating. It seems hard to find out why. The tone hasnt changed much. Moving ever farther away from matching the record high. Chip related stocks are getting hit. Ibm, intel, microsoft. We know intel tells us the cycle has come to an end when it cuts its sales guidance. He analysts are talking about weak demand for pc processors. If you look at the vicks it is edging higher. Its above 15. The 10 year yield at 1. 92. There is a weakness in treasuries after an auction did not attract as much demand as anticipated. Oil is higher at almost three and three quarters percent. It is a kneejerk reaction to the weaker dollar. Trish also production not rising as much as previous weeks. Its time for our big story. Its the biggest deal of the year so far. Heinz and kraft coming together in the megamerger bringing them together under the same roof. The new company will be known as kraftheinz. Joining us to discuss is ed hammond, julie hyman, and joining us over the phone is the ceo of capital management. Before we get to the nittygritty bill, did you like this deal . Bill we like customers and we like the transaction. It appears there is going to be a lot of cheeseburgers eaten around the world in the next four or five years, so we have the cheese the catch up, we have everything going. Trish you have been looking at how unusual this is. Julie usually when you have a private equity firm, they do it through bringing the company public. In a way, they are doing that but they are doing that through another vehicle, by merging with craft. If you look at it, 3g capital and Berkshire Hathaway are investing a lot less than they would if they were doing traditional acquisition, essentially putting in 10 billion in cash, which is split more or less evenly between berkshire and 3g capital. Then during the sharing of the shares getting with kraft getting 49 . Its not what you typically see. Not taking on any debt, which is unusual. Trish they dont need bankers. How much did buffett make in this deal . How much is the combined Company Actually worth . Ed its difficult to figure out the actual value. We think the value is around the 50 billion mark. That is what we put on it now. From what we understand it did not come together phenomenally quickly. One Thing Holding it up was how much is this actually worth to kraft shareholders . They are taking a stake in a private company and becoming a bigger public company. Nobody knows what the shares of the combined company will trade at. Trish you said you liked the deal. The cheeseburger, you said you own the whole Food Industry with that. This is a large number. Have you feel about the potential price tag like that . Warren buffett needs to get large chunks of money invested in things that dont violate his approach so this is very much in the context of a business. He is smart in spots and likes to stay close to those spots. He is staying close to his spots. Remember, these companies together can go to walmart, and they can go to costco and all the people that received the products and sell the products on the retail level, and they are going to be in a powerhouse bargaining position. They are going to get a good spot for their cheese and other things. You are talking about creating a powerhouse. Warren buffett is applying capital to the addicted Customer Base businesses. He can look out in 20 30, 40 years and know people are going to be eating macaroni and cheese which is the most popular thing in the world for two to fiveyearold americans. Trish the interesting thing about this deal is it was a powerhouse already. They essentially had a huge brand, was a global company, and then spun off the brand to focus on the u. S. And north american this notice where it gets 98 of its sales. Part of the growth proposition is the management is saying we are going to sell our brands internationally. Quite how does that make sense . The recently arrived ceo said you can do scale if you do it well. In other words, the implication is 3g can do it better than prior management. Trish there are still issues with craft. They are exposed to commodity prices, yet they are forecasting 1. 5 billion dollars in annual cost savings. Does that mean we are looking at massive firings . I think the involvement inherently determines there will be massive firings. These guys are phenomenally smart at drivein cost savings out. They did loads of stuff. They barred people from doing color photocopying. They do these small adjustments, but they all contribute. There is no doubt about it. They will be doing the same thing. They have looked for a long time. Thats at the end of the day cutting cost is not the same as growing a business. Bill remember, things like currency fluctuations, those things over 20 years are going to come and go. The kind of thing as investors have been excited about internationally over the last 10 years, yes, they have reason to not be as excited now, but over the next 20 or 30 years, there will be lots of opportunity. Its probably a good bet these businesses will grow during that time. Trish thank you so much. I appreciate your coming on. You are sticking with me. We have lots more to talk about. This deal isnt the first time 3g and berkshire are teaming up. Many say it wont be the last. Plus it may be the biggest deal of the year so far. Could there be more in the pipeline . Or are valuations just to rich . Too rich . Trish teaming up in the biggest deal so far. This isnt the first time they joined forces. How did these powerhouses get together in the first place . Joining me is pimm fox. 3g capital is run by george lehman. Who is he . Pimm hes a former davis cup star. He has two partners he works with on deals. I would imagine you could go back to the beer deal they did in brazil that put them on the map in terms of what they are able to put together and taking that deal and turning it into the anheuserbusch deal. They had been active. Thats thats why i love you. Trish you know all this stuff. P this is from pimm this is from bloomberg sources. Trish how did they get together . They are very different in the way they run the companies. Ed they have this wonderful symbiotic relationship. Berkshire hathaway is this old company that cherishes brands and keeps them going. 3g is the most aggressive private equity shop you can get. They are known for shedding costs from the getgo, being fairly brutal and how they manage the businesses. What seems to work is buffett gives them over near of acceptability. He gives them money. What he got when they originally did the deal, thats going to go away. He is still going to have about 46 million warrants exercised at a penny a share. If he does so at the end of the deal he winds up with 26 of the stock of this new combination. Trish the best question everyone is asking is what are they going to do next. They have partnered with burger king. They bought heinz. What do you think . Bill i think part of the convenience is largecap stocks are very inexpensive in relation to smallcap stocks. The typical private equity world is to search around for a small midcap company, i them, do the things you are buy them, do the things you are going to do and run them. That has been so combed over because private equity people have drowned in 1. 1 trillion of cash they cannot find a home for right now, and smallcap stocks are about 30 more expensive than largecap. The place to go is a large cap, so you got kind of a marriage of convenience. You have got relatively ruthless private equity buyers combined with warrens all shocks. Aw shucks. Warren seems to want to make a lot more money. Trish what do you want to see them by together . There are a lot of analysts saying, perhaps calix, general mills. Not the me analyst to say that. They are saying the same thing that it could be very strategic. What you want to see them do . We happen to be in the camp of people that believes we are in the early stages of five to 10 year positive run of the u. S. Dollar, so we are much more interested in what goes on inside the United States. This transaction, when you think of 86 million millenials just that he and having kids the mac cheese and cheeseburgers are right in the hunt the next 10 years. Most of the companies being thrown out, if you are depending on the next couple years for what is going on outside the United States, we think you are struggling, so the irony, for example, in our portfolio we are very light in Consumer Staples. Why . Because they trade at premium prices to the rest of the market, and we think there is more leverage inside the United States from what goes on here. There are not any kids that went without toothpaste or qtips over the last four or five years, even in the worst of the meltdown. Pimm i was just going to say trying to connect Warren Buffett with lehman he was on the board of gillette. I wonder whether there is somebody out there saying, you know all those brands they are trying to get rid of. Maybe these people can figure out a way to make more money. You were nodding. There is one thing they agree on. That is these megadeals. Buffett has been scathing of these deals. He was very critical, saying they show up one minute and the next minute say, sell the company. To do a deal of this size with one Investment Bank each is pretty much unique. We think it might be the largest transaction ever done. There will be general m a for the u. S. Big companies. You are sticking with me. Thank you so much for joining us. Always a pleasure to have you on set. Coming up next, will there be a bigger deal to top craftheinz kraftheinz . And i will talk to the big at your general about what needs to be done to secure the region of yemen. Trish heres a look at the top stories. German Business Confidence increasing for a fit straight month in march. Growth accelerated to the fastest in eight months. More evidence europes largest economy is over it slumped. It fell into the middle of last year. Elaine wynn said she was unaware of a stock sale made during a time when the company said directors are prohibited from selling. She is in a fight to keep her seat on the board. She said the decision to the vest funds to found her foundation were made for charity advisers. The Supreme Court saying alabama may have improperly redistricted black voters. And a 54 ruling the court sending it back to a lower court that upheld the district lines. The justices telling a panel to assess whether race played too big of a role in setting the boundaries of a particular district. The kraftheinz deal may be the biggest so far. Still with me is ed hammond and bills made. He joins us from the phone from phoenix. What is going to be the biggest . Bill thats a good question. Maybe i would be skipping every deal if i could predict. This is a huge deal whether you look at it from value terms or how exciting it is. Early in the year, you would say this would be the biggest. We saw enormous deals. Obviously, they were being eclipsed. We had the pfizer astra zeneca attempt, which would have been 16 billion or maybe more. Is this going to be the biggest . I would say probably not, but in terms of how exciting it is and the impact it has on the Food Industry, its one of the most important deals of the year. Trish what do you think . The theme was about biotech firms trying to team up. Had you think the m a will play out how the you think the m a will play out . Bill valuation matters deeply. We are an owner of ebay, and the way the circumstances of laid out over the course of the last year with activists involved in the stock announcing they are going to split into two Companies Paypal and marketplace and the current ceo is stepping down and wont be the leader of either one. I set down and made a list of who would want to buy paypal paying cash to buy a in excess of 40 billion. Its a pretty goodsized list. You have everybody from google and microsoft and apple and so on and then the strategic buyers that have incredibly highpriced earnings ratios stock with which to go after paypal or marketplace, and those would be facebook and amazon. From an experienced standpoint, you look and say this company is open to those kinds of passes over the next 12 months. Trish interesting. Thats what you are watching. Thats what you own. Thanks for joining me on this deal. Yemen has become the greatest battle. We are going to focus on that next. Trish here are the top stories we are watching ahead of the closing bell. A yearlong review of the fbis findings. The agency urgently needs to confront evolving terrorist threats. The fbi is being urged to prepare for foreign fighters and extremists working alone and a new breed of criminals working. The Berkshire Hathaway vicechairman says the competitive advantage may be eroding. The ceo says the Company Faces challenges over the next two years. The Company Overcomes the loss of costco. Pimco is increasing its stake in u. S. Singlefamily rental homes. The firm buying interest in haven broke homes. That company manages 4000 rental homes in florida minnesota, and alabama. Pimco began investing about two years ago. Just under 30 minutes until the close of trading. Our chief market correspondent is looking at the big movers. In this mysterious day, what were some of the big movers . A couple of interesting ones that do not involve billion or from omaha, lets start with tesla. It involves an american billionaire. It was sued. You have an analyst downgrade to underperform. The analysts are saying initial lower margins could pose risks to nearterm earnings at tesla. Lexmark is the other notable one. It is a 47 premium to koufaxs last close. The Quarterly Dividend is not at risk. Lumber liquidators making a bit of a comeback up 12 . Federal regulators are investigating the company after a 60 minutes story this month. The reason the stock is rallying is because a Consumer Agency says it will not use the same test. They have repeatedly pushed back , saying the methodology was not great. They put out a note saying this was a win for the company. Last we will check back with you later. We return to the french alps the crash site of flight 9525. The two americans are among the People Killed when the plane went down yesterday. French investigators uncovered voice recordings from the cockpit and are looking into what caused the crash. Hans nichols is near the crash site today. What kind of progress are they making . I see it is dark now. The big progress we have had is they now believe they are going to be able to scrub the flight box recorder. They are going to be able to extract the information to figure out what happened. This could be the voice recorder could have every vital sign. A third Important Development is the crash site it does look like the plane exploded upon impact which it means it did not explode midair. We have had numerous helicopters take off all day. You can see behind me there is a giant field. This is where Angela Merkel and Francois Hollande landed, and they saw how difficult the terrain is. Helicopter and rescue workers had to repel down from the helicopters. It is too dangerous to land on the slopes. Thank you so much for joining us from the crash site. Yemen emerging as the latest apple ground between saudi arabia and iran. The saudi government is urging to send fighter jets. A president ial aide saying they have left after rebels seized a key airbase north of the city. Joining me to discuss is the Brigadier General david phillips. He was serving as the director of security for the pentagons army staff on 9 11. Its really great to speak with you today. Would you call yemen a civil war zone right now . I would call the entire area of the world a significant concern for us. My area of expertise really deals with how to counter that involving the iranian resistance. There is a resistance to what iran is trying to do. Trish what is your expertise question mark what do you think the Obama Administration should be doing when it comes to dealing with the rebels as well as iran . David in iran specifically we have a resistance made up of iranian expats and iranians from within iran. They are the resistance. We ought to be using them to counter what iran is doing. Trish i have a question about yemen. It seems like the Mainstream Media has latched onto this. That means it will build up speed quickly or does the west catch on to how dangerous that might be . David there has been a great deal of danger there. There is a resistance. You dont have to put u. S. Boots on the ground. You can utilize those resisting the current regime in iran. Use iranians to do it. Currently men and women are being detained in baghdad. They are the ones that want to bring democracy and freedom to their country. Lets recognize them. Trish you are saying use iranians to help the west. Why arent they doing that . David that is one of the issues that has been bothering me for 12 years. I started dealing with the resistance to the current iranian regime. They have a platform that nears what our nation was founded on. Number 10 is a nonnuclear iran. Lets recognize it. That would send a message to the meal as mullahs in iran if we recognize it. Trish does the blame lie at the white house, not just the Obama Administration but the Bush Administration as well . David they were placed on the terrorist list in the 90s. They were removed several years ago. Were they put on the list as appeasement to iran to get iran to come to the table . They have