Dollar goes to a tender offer. And ackman says, hey, wake up, allergen. He calls their actions embarrassing. And the first deal at microsoft reports theyre close to a 2 billion purchase. The target, the video game maker behind mind craft. First up, apple creating all that buzz by unveiling new iphone 6 models, which are larger than their predecessors as well as that apple watch and the mobile payment system. Stocks rose sharply, up more than 4 at one time, after apple pay was announced, but then lost its gains following the unveiling of the apple watch. It did finish the session lower in true apple fashion. A lot of analyst calls. A lot of media buzz today. The new york times, their headline is, quote, apple is back better than ever. Yeah, first of all, you are iron man. Last i looked, he was there. Maybe there are two carls. A lot of other media areas. When does the other carl come in . I think we ought to step back for a second. First of all, when the watch came out, the misfortunate came out at the exact same time as we heard the word considerable might be dropped from the fed statement. People are much more concerned as weve been doing a lot of work on cnbc. Com to see that the fed does the wrong thing. So it was just poorly timed, the watch presentation. But i think the presentation was good. A lot of us watched it, every minute. You know, carl, what would any other company in the world kill for to get when the front page of every business section . Isnt the real takeaway here that if youre an advertisement firm, i hate those guys. Now i have to go to my guys and say, ill get you a splash, but its going to cost you tens of millions of dollars. In the end, everyone in the country that i know is debating whether to buy a watch. Who the heck ever thought that would happen . You said on twitter youre going to get one. What does this do . All it does is scratch when i do the lightning round, so i take it off. And this isnt even sapphire. Ive had it. Its heavy because the one i bought at canal street was too light. People were fooled. Then they werent when they touched it. Its heavy. So what . If im going to get a heavy watch, why not make it a watch that does something other than tell time . Ill take this one. I want this to be swiped so i can find out look, one of the things we always look at is the snapshot. Will you give me my watch back . No, you can keep it. Im getting one in the spring. When you get the apps, im going to be able to get espn. Com and its going to do my fantasy. We have them on the show today. You have bowman . Bowmans back. I love bowman. Can i make a point here . Im a watch. All right, great. A new product getting kudos for it. What im hearing from investors is a lot more excitement about payments. Mobile pay. And creating an ecosystem that could lead to nearer term profitability, perhaps. And finally, transform what weve been talking about for many times and has been attempted by other companies not to success, but weve seen apple carve out New Territory where there were very small, minor paths made previously. Youre raising a great point. Do you remember in the isaacson book where jobs just went to the Record Companies and rolled them. Just rolled them. We know that they tried to roll the cable companies. We worked for comcast. They werent able. David, my question to you. Did they roll visa and mastercard . Did they roll them . Its win win, im sure theyre saying. Well, the Record Companies said win win too. They may have also. I think the proposition to them is we will reduce fraud. How much are you paying right now . Xpi reduces the fraud. Its a semiconductor. Well, no. Youre not even going to have a number anymore. Its just going to be in your phone. Its going to be protected. Apple may take on some of the fraud risk. Carl, you may have more details. The credit card is preloaded on your phone, absolutely. Look, maybe visa and mastercard had to do it in the same way that itunes made it. I think in the end apple has gotten in that business. Once youre in that business, a lot of people saying theyre not going to make enough money. People dont know anything. People dont know anything. I mean, visa and mastercard are profitable. You take a little of their cake, youre going to get a lot of money. Thats going to add up to a big number. A couple million cards in russia. If you really can transform this form of payment. And given every other day we hear about another breach, one would expect that will only add to the momentum behind something that is going to be more secure. Not completely secure, we know. Look what happened to the cloud. But more secure. You dont want to do you want to go back to a paper society. You dont want to use any online stuff. If someone offers me a secure anything, im thrilled. Meanwhile, all its really going to do is get you to buy new phones. Its the 6 and the 6 plus. By the way, for the watch, you still need the phone. So its an ecosystem. I buy in. You raise the ibm thing. I wish i had heard more about it. Did you hear anyone talk about the ibm . Not really. Josh lipton brought it up during the conversation. It was not a day for the ibm partners. Yes, but i keep thinking trojan horse. Once the ecosystem gets in, you buy the ecosystem. You do it because salesforce. Com is writing stuff right now for your watch. This is whats going to happen. Thats why the bowman interview what a great book. You made fun of pacific crest, which did downgrade as they threatened. Listen, let me give you a Little Research 101, having Read Research since 1979. Dont downgrade and raise your numbers for the reason you downgrade. We dont like the watch, but were downgrading it. However, were raising numbers because of the watch. You know, thats whats called wrong research. They can have an impact. But we know that one year from now, the average apple increase since phone is 38 . You downgrade and you cut numbers. You dont raise numbers. Etiquette. Its called research etiquette. Thats the way its done. Although, it is all about which way the stock price goes. He may be right for up to four hours. He may be right for 36 hours. Could be. Wow. Thats what this is in the end, its about any lessons you draw from that action yesterday . The stock up over 4 . Theyre talking payments. They get to the watch, then down on the day. The lesson is you ought to be in the brokerage business every time they launch a new phone. Were going to talk a lot more about the payment, the economics of payments today as it applies to apple. Thats going to be a good discussion. Meantime, microsoft making news today as well. Looking to boost its presence in the video game space. The Company Reportedly in talks to buy swedens mojang, the maker of the popular minecraft video game for more than 2 billion. The deal could be announced as soon as this week. This would be youre still playing with the watch. He likes the watch. Im sorry. I didnt mean to i just gave him the watch. I dont need the watch anymore. Ive got a watch. I can have two. Did you see colbert smash his watch last night on his desk . I only watch cnbc. Is that what he did . Well play the sound a little later on. I dont need this. Ill wait until march. I can do without a watch until the new watch comes. I have yours in case you want it back. I have a 10 canal one. Ill wear it next to you every day. It has two phones on it. Whatever. Anyway, first big deal. Is this the beginning of the spinoff of xbox that people have been talking about . Why not . You think so . I think xbox gets spun off. They both get up with the actual games and the console and then spin it. Yes. Really . Thats what i think is going to happen. Thats why this acquisition happened. Youve got the biggest Gaming Company in the world. We know from all these different acquisitions that gaming is done by hundreds of millions of people. This gives you i want a share of xbox. I do. I want a share of xbox. Dont forget when you do that and its interesting to consider it. You have your own currency if youre xbox, and therefore you can continue to acquire, not just for cash, but using your stock. In this case, always interesting to note, microsoft is using overseas cash. Were going to be talking later to Chuck Schumer about his latest bill on curbing inversions. Theyre using overseas cash, which they have a huge pile of. They did the skype deal the same way. 2 billion is nothing. They find that in the couch. But they find it in the couch overseas, as opposed to here. Absolutely. Thats whats going to happen. All guys you can ask. Can i have the iphone . The security, which tells me whats going on at my house. Im telling you, you got to think big, people. Bowman, ralph, these are the people. Davids got sprint. Yes, tomorrow. They do the best because of the new lte. They have more bandwidth. Not to mention, i would imagine with the new phones and sprint and tmo and what theyre trying to do, theyll just give them away. Who knows. Theyll pay you. Maybe theyll do an amazon deal. 99 cents. And you get prime, throw it in. And still nobody wants it. Think about the bookings. Youre talking about the bigtime winners off this. Its at t, right . It could be General Electric off of health care. It could be bowman. Time to get an mri. Thats what im going to get on my watch. You cant get jack with that 3,000 bright light. Its going in my pocket now. 365. Thats too much. Look at this thing. All it does it tell time and its fast. Its fast its not even like the naval observatory nice weight. David, no one knows how much it weighs unless theyre wearing it themselves. This is the kind of watch im going to keep. Jims guns i smash apples with my guns, but you dont see me on the today show. My mother was the same. When we come back, Dollar General going hostile. A wakeup call to allergen. Also, pennsylvaniaer in ra jumping on the apple pay bandwagon. Take another look at the premarket here. Some moderate strength. Nice turnaround in the middle of the session. We did start the morning weaker. A lot more in a minute. Im type e. My golden years will not just be gold plated. I had 3 different 401 k s. E trade offers rollover options and a Retirement Planning calculator. Now i know when im going to retire. Not if. This guy could take down your entire company. H . Stay with me. On thursday a hamster video goes online. On friday it goes viral a network choking phenomenon. Why do you care . Hes on the same cloud as your business. The more hits he gets, the slower your business may get. Do you want to share your cloud with a hamster . Today theres a new way to work. And its made with ibm. My golden years will not just be gold plated. I had 3 different 401 k s. E trade offers rollover options and a Retirement Planning calculator. Now i know when im going to retire. Not if. Dollar general has gone hostile in its bid to buy rival Family Dollar. Dg announcing this morning its taking its 80 a share offer directly to shareholders via a tender offer. That deal, which is 74. 50 a share, below the 80, but key has been antitrust. While this does take things to another level in a sense, it also is almost meaningless because while you can tender into their offer, which will expire on the 8th of october, they cannot close that tender offer, in other words buy the shares that have been tendered to them until they receive any trust approval, which is going to be far, far, far beyond october 8th. Hence, you will get a lot of shareholders tendering in. That will come before the shareholder vote on the dollar tree deal. And it will be at another time perhaps that Dollar General is able to use to make sure that deal does not go through. That being said, it will give Dollar General the opportunity to engage in conversations with the ftc to start to try to understand where they really would come down potentially in terms of forcing divestitures from a combination of Family Dollar and Dollar General. That in turn may allow Dollar General to figure out whether, in fact, it could go as weve been saying hell or high water. It could offer to Family Dollar what it wants, which is to say well take on all risk when we say were going to buy you, and thatll be it because theyll have a much better sense as to where the ftc is coming from. By the way, nothing would have stop them from filing hard and starting that process a couple weeks ago, even without a tender offer. But they have now done it at 80 a share. The dollar tree deal stands as it is right now. As we get closer to that vote and the end of this tender offer, well see where things stand. Youve got a board member you reference. Ed garden. Hes been quoted in the releases when they have said were not interested in your deal because were worried about antitrust. Youre him. You see this. Does it mean anything . No. Wow. In fact, it may still go to this. What i would argue is this background notion that these guys really are much more interested in trying to upset the deal with dollar tree rather than actually move ahead. But this gives them the opportunity to really explore in detail with the regulators what its going to take. They wont know for certain. Because its only a couple of months. Not even. Its a month. But they will at least get some sense as to a road map, perhaps. So they might be in a better position to know what risks theyre willing to take if they want to go down that road of more than 1500 stores. Remember, that was the last divestiture offer from Dollar General. No reason to buy, but a reason to stay focused. Yes. All right. Not the only fight thats going on either. Bill ackman sounding off and criticizing allergan. He writes, your actions have wasted corporate resources, delayed enormous potential Value Creation for shareholders, and are professionally and personally embarrassing for you. The smell of strong brew is in the air. Now is the time to wake up. One source said hes telegraphing his next position. Its going to be Green Mountain coffee. But no, we jest. He likes writing letters. Im not quite sure what the effect of this is. He does bring up points weve made in the past, which youve had an enormous turnover in the base of this company. If those shareholders who had been there really believed it had a great deal of upside from here, they would still be there. Thats a fair point. Weve pointed out they have over 33 of the shares in favor of consent calling for that special meeting that may take place in december. Perhaps a bit earlier than that. But yonbeyond that, im not qui sure what the point of this letter was. The key question from my perspective is, will allergan try to do some sort of acquisition that puts a stop to all this . That, i think, is ive reported, while nothing was imminent from what i was hearing, there certainly have been conversations that have taken place. Well see. Why is it always jazz pharmaceutical . Good company, but whenever i hear allergan might buy x, y, z. But if allergan were to do something, we dont know what it would be necessarily, but conceivably it would stop valiant in its tracks. What would the stock do . The reason why i like allergan on its own is they put out a 10 number. Suddenly you lose the 10 number but you end up losing the cash. What i see is that i hope they dont do that. If allergan is independent, you have 160, maybe 170 stock on its own. Typically 18 to 19. That means they have to continue to fight this fight over valuation and questioning valiants Business Model and growth. It simply comes down to, what will be that meeting . And allergan has to come through with these products people are saying are really big. They have a lot of work to do to stay independent. But david is still continuing to surprise people. You dont put a tough letter like that out unless you recognize he turned out to be more phorfo formidable than you thought. Ackman says its running the most unfriendly, hostile defense process in corporate america. I hope all the companies i recommend double. Awful to shareholders, but the stock doubled. But that doesnt matter. Kind companies. Tuna with good taste or tuna that tastes good . Well get cramers mad dash as we count down to the opening bell. Later, senator Chuck Schumer, whos pushing to make tax inversions a little less attractive to u. S. Companies. Premarket suggests a moderate bounce at the open. More squawk on the street in a minute. Theres a difference when you trade with fidelity. One you wont find anywhere else. Onesecond trade execution. Guaranteed. Did you see it . In one second, he made a trade, we looked for the best price, and the trade went through. Do the other guys guarantee that . Didnt think so. Open an account and find more of the expertise you need to be a better investor. An Unprecedented Program arting busithat partners businesses with universities across the state. For better access to talent, cutting edge research, and state of the art facilities. And you pay no taxes for ten years. From biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo. Startupny has new businesses popping up across the state. See how startupny can help your business grow at startup. Ny. Gov i take prilosec otc each morning for my frequent heartburn. Because it gives me zero heartburn. Annc prilosec otc the number one doctor recommend frequent heartburn medicine for nine straight years. One pill each morning 24 hours zero heartburn. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. All right. 6 1 2 minutes by my count to the opening bell. Time for our mad dash. You and i have occasionally poked fun at research, at analysts. Lets stop right now. Russ at bank of america upgraded caterpillar downgrades it just now. You know what . Mining projects. They are in trouble. Mining projects can get canceled right in the middle of a mining project. And they are worried about mining, and they argue their energy and transportation, the Power Systems business,