omnicom quite a lot larger than publicis and taking an equal share. you know, i still think that our business is incredibly simple. it's about keeping your clients happy and delivering for them. and it's about having the best talent. and i don't think by making a company twice as big, you actually, you know, none of our clients are saying to us, we want you to be bigger, and we want to be a smaller part of your overall company and less important to you. a key thing for our clients, we want you to be faster, more entrepreneurial, more agile, the world is moving much faster. they're not saying we want you to be bigger. and when you get bigger, you become more complex, more bureaucratic. i think the -- you know, the deal in the way they've engineered it and constructed it is incredibly clever, and i think that's testament to that they're both very smart, talented ceos. i think in the long term, there may be cost synergies, but i'm not sure any of their clients will think this is a great thing. >> we'll see what happens. it proves you never know what's go

there's omnicom. a nice move up. >> you continue when they get involved with mergers they do well. >> they do. >> i see perry go down. i wonder whether perry go finishes down. >> they did manage to get a premium over royal tayepharma tg to do. it's not a done deal. but is it likely to pass muster with the shareholder base certainly would seem. don't appear to be any other bids are. they held a process. you heard mark schaffer, the banker running it, saying positive things about where he was hoping it would end up, not sharing distinct information on it. it's tax rate. these irish deal, whether it's -- i mean it's just -- incorporate -- >> i was looking atshire. >>shire's not a company that i like. why? has a couple of products about to go off patent. but the stock's up big, betting someone can buy shire and change their tax rate. incredible driver to get out of the u.s. tax scheme. >> yeah. perigo shares. 6.25 in cash. elan, if you remember, royal toy stream, which they sold to boy, they get roleties,

. >>> here in france, one of the biggest companies is getting ready to mearge with omnicom to create the world's biggest advertising firm. executives are confident it will go through. >> it's a megamerger to create the world's largest television firm. between them, publicis and omnicom are possible -- responsible for some of the world's biggest brands. the new company will have more power to influence prices. >> the clear intention that we're going to create value, create more opportunities, we're going to honor our talented people and our talented clients and create something that no one else i think could even contemplate creating. >> the new firm will unite rile brands under the same roofs, including the likes of pepsi, coca-cola, microsoft and google. but they say it won't create conflicts of interest. >> we're already used to hamming clients in the same sector and we do it with agencies that use different names. it's something that's very common in the world of advertising. the omni com group will be head quartered in the netherlands. the group will face some competition laws. t

liz: advertising giants, publicist and omnicom agreed to $31.9 billion merger. they will be the world's largest marketing group by revenues. under structure they will retain headquarters in paris and new york and plus a euronext paris listing as well. david: perrigo in the united states has agreed to buy irish drug company elan for 8.6 billion. guess, u.s. company is going to ireland because they have lower taxes. the deal isn't expected to close until the end of the year. liz: want a job. maybe amazon will hire you. they plan to add 7,000 jobs to meet rising demand. the company will add 5,000 full-time jobs in the fulfillment centers in the united states and 2,000 customer service jobs. david: that is good news. ben bernanke should give a deposition in the lawsuit being brought against the government by former ceo hank greenberg over the rescue of the company, aig. bernanke was one of the central decisionmakers in the huge bailout of the firm. liz: sec resting its case in the fraud trial against ex-goldman sachs trader fabrice tourre. in a move the defense team

to me, that means there's still an opportunity to buy omnicom here. as shareholders, we'll get a dividend and reap the benefits. far more gains that might be lost by obvious -- represents both pepsico and coca-cola. that's not going to stand. why the defensive nature of the deal? because advertisers are going directly to facebook, google and twitter, cutting out traditional firms. i don't think this merger can stop that flow. if anything, if i was running one of these companies, i would have sought twitter. two old line ad firms do not necessarily have the smarts to go mobile. that's something facebook, twitter and google, to another extent, salesforce.com know how to do. with younger people increasingly turning to their mobile devices for all sorts of news, sports and entertainment, you can't afford to let facebook and google dictate the terms to their clients. tv, web, print, radio, that's going to be viewed as a positive by the clients. somehow, the combined entity can wren f better terms from the online ad world. second deal is kind of a puzzle, f

does not see a need for a major merger or acquisition following that merger announcement we heard from omnicom and publicis. and announcing they would have a share repurchase. another i want to mention, caterpillar, repurchasing $1 billion in shares from sog gen. and we'll end on herbalife, scheduled to report after the bell. the street wants to see eps of $1.18 on revenue of 1.2 billion which would represent year-over-year growth of 8% and 12% respectively. carl icahn saying it's undervalued, said he has made $250 million and has not sold a share. you heard about the billionaire brawl here, icahn is long, ackman is short. back to you. >> all eyes on herbalife after the bell. we'll keep you around to watch that with us. >>> right now, about 50 minutes before the closing bell on this day at the end of july. we have the dow that's down just about 29 points. the s&p is down just about 5. >>> talk about a bearish call. our next guest says the dow is going to reverse course and reverse course in a dramatic fashion and hit 5,000 before we ever see 20,000. he's going to make his case next. >> yeah, w

here is why omnicom, at targeted advertising it reaches just the

based omnicom combine. however that, deal is expected to face intense regulatory scrutiny t.ceos of both companies will join "squawk in the street" at 10:10 eastern time. and we are just getting word of another deal. it is official. lord and taylor owner hudson's bay will buy retailer stacks. our brian sullivan has been reporting beforehand this deal was worth $16 per share and provides a 40 day shop period which people can seek out other potential buyers. that stock is up about 4.5%. >> you have the history of saks. >> like the profits when they first came in. >> it's that space in new york city is probably the greatest retail space in the world. >> across from rockefeller center right there on fifth avenue. >> six floors. >>> in walk news, president obama now says he's narrowed his choices to zayead fed chairman ben bernanke to, in his words, to some extraordinary candidates. in his news, he says he will announce his pick over the next several months, former secretary larry summers and janet yellen are co

here is why omnicom, at targeted advertising it reaches just the right demographic groups, they are good at studying people's internet surfing behavior. where they surf, how long they surf. that is a lot of data, monitoring a lot of users, with every point and click, leave a digital footprint. and don't google and facebook already know it, they have joined forces to try to combat it, then, these are not your average high-tech sleuths, they got it down to a science. pinpointing it down. so focused, so sweeping corporate clients pay top dollar to chase customers, say we'll spend dollar on their products, when these guys do to your privacy, is just starting, to aclu's chris, said in could be more like high-tech piratey, what these guys, have, in their arsenal are such stunning high-tech skills, at mining data and your preference in when do you on the net it mind boggles. >> it is. imagine, they are doing what big brother never could. you have dozens of little brothers building a detailed profile on each of us, using it to serve ads, combining with information they gathered from off line wor

liz: advertising giants, publicist and omnicom agreed to $31.9 billion

here is why omnicom, at targeted advertising it reaches just the right demographic groups, they ar good at studying people's inteet surfing behavior. where they surf,ow long they surf. that is a lot of data, monitoring a lot of users, with every point and click, leave a digital footprint. and don't google and facebook already know it, they have ined forces to try to combat it, then, these are not your average high-tech sleuths, they got it down to a science. pinpointing it down. so focused, so sweeping corporate clients pay top dollar to chase customers, say we'll spend dollar on their products, when these guys do to your privacy, is just starting, to aclu's chris, said in could be more like high-tech piratey, what these gs, have, in their arsenal are such stunning high-tech skills, at ming data and your pference in when do you on the net it mind boggles. >> it is. imagine, they are doing what big brother never could. you hav dozens of little brothers building a detailed profile on each of us, using it to serve ads, combining with information they gathered from off line world, and creat

omnicom and publicis, had the ceos down here for "squawk on the street." boy, a surprise. biggest advertising firm in the world, both moves. modest moves up in publicis. perrigo buying elan. and another bid, not a big surprise, but an interesting deal, saw lord & taylor's owner hudson's bay company announcing they'll take saks private, $16 a share, a very big real estate component coming into play for that one. hertz was in line, but it's down because there was disappointment that they didn't raise any guidance for the company. i can tell you as a frequent hertz user, they're certainly raising auto rental prices. they say, though, that will be flat in the next year. we'll see about that. if you can't get better earnings guidance, what else should you do? announce an accelerated share repurchase program. that's what caterpillar did. they announced they're buying $1 billion of caterpillar stock. about 2% of the company. how about earnings tomorrow? new york stock exchange will be out with earnings. the only thing i really want to know a lot about is when will the deal close?

and the big deal sunday announced and omnicom was up big, but now it is flat since the deal. >> people were saying to cut the costs, but will they get the big head and shoulders account? where is rg3 going to appear? facebook. facebook. facebook. >> yeah, facebook. >> we are is not mentioned comcast our mothership here, and beats by two cents and the revenues up by seven, but first quarter owning all of nbcu, and rev nooenues are up, and that w beat, and typically, david, not a great quarter for ads and sub ads and adding broadband of 147k. >> well, broadband is the key product, and the question is will you start to see the people pulling the ad video, but a it is not growing, and the sub growth is over for the cable industry in general, but not bad and operating cash flow continues. >> did you see that -- >> just to move up sharply. >> we work for them and i want to put that out, because if you say operating cash flows up 23.5% and the free cash flow up, and we are talking about executionable and profitable for a all. >> and brian edwards of comcast addressing the notion of cash flow

omnicom or publicist teaming up trying to take power back from the online ad surge in silicon valley. we'll look at these deals and many more. it has been somewhat after merger monday straight ahead. there you go. tracy: sure has. ashley: time for the stocks moving a little lower. let's go to nicole petallides on the floor of the new york stock exchange. nicole? >> ashley and tracy, we're sseing the markets under pressure here, right? we've had five straight weeks of gains for the dow. the last couple weeks have been minimal gains but they have been up arrows nonetheless. the dow jones industrials still sitting above 15, 500. for all the bulls out there they're still pretty happy with the performance they have seen, down a quarter of 1% today for the dow and we have a lot of economic news coming out. fomc and payrolls later in the week. you mentioned one of the deals, there are three deals today. another would be elan. shares of elan have been jumping parrying go will buy the firm, $8.6 billion. there is elan 8.6%. perrigo pulling back 6 1/2%. shares of elan are hitting 52-week high t