Different alarm. Often a critic, Rupert Murdoch takes a shot. Google with harsh tweets about privacy. Family dollar at center of a bidding war. Dollar general announcing an offer to buy rival discount retailer for 78. 50 a share in cash, total transaction valued 9. 7 billion, counters dollar trees 74. 50 a share, cash and stock bid. So much, jim for not everybody working in late august in the summer. Somebodys working here. This is interesting. This was what we first thought would happen. Exactly. Surprised that dollar wasnt involved because its a better fit. You can tell from the stocks reaction, people agree. I like allcash bid. Lots of overlap in the two, youll be able to take out more cost. Thats what we like about takeovers, consolidation and cost taken out. Even icahn in Family Dollar and precipitated all of this at least public conversation we know discussions with Family Dollar and dollar tree had been going on for some time before icahns involvement. He himself thought that Dollar General was going to be the best suitor from the getgo, they were having a ceo issue, a guy who was retiring. And that sort of threw the other dollar in the mix. I keep hearing that the guy was a ham let figure, like to be or not to be, you know carl. This made so much sense, was it kind of an extension crisis or new ceo coming in so dollar gen caught unaware . When i look at whats happening in retail, theres a vast middle, walmart, target, targets thinking about opening up more hours, i mean, no it aint more hours, its more people. I mean this is the segment that you want to be in. Some people believe, people ive been speaking with, that the Dollar General ceo said he was going to retire, hoping to put off the deal with Family Dollar. So confusing with dollar, dollar, dollar. With Family Dollar, hoping to come back maybe and get it for a lower price. Thats not going to happen. Now obviously dynamics have change a little bit. Even with this new offer, its far from over. Far from over. Even because its a higher price does not mean its a done deal. Dollar tree comes, makes its bid all cash. What if someone else lurking. What if dollar tree comes back . What if Dollar General, which says it has is going to divest 700 stores, maybe thinks it has to do more than it doesnt want to to that, it can walk. Lets bring in david faber on the phone who has more insight into all of this. David, based on who youre speaking with how you know the story, your thoughts, putting into context here . Good morning, guys. You know, day one, jim and i were sitting there talking about and i reported of course that Dollar General was surprised by the dollar tree deal. Very important than confirmed by rick in a conversation with high had earlier this morning. Given that, and given the last few weeks under which theyve heard from so many of their shareholders expressing their desire to see Dollar General make a bid, benefits they believe considered upon Dollar General if they did so, they have moved from what seemed to be a rather slow pace, as you pointed out, scott, to a potential deal to deciding they had to come up with the top here. My guess, it gets rejected by Family Dollar. I dont know that to be the case but that would be expectation i have though dollar wise its above the other deal. In fact, i think the lack of cash, the lack of stock in the deal may be something that we see change. There is a desire on part of Family Dollar shareholders, i believe, to be able to participate in the synergies that will improve as a result of the combination. Therefore my expectation might be if you see a higher bid which will need to happen to actually carry the day it may have a stock component down the road when Dollar General, i think, will ultimately win. Well have to wait and see. Dollar tree, highly levered Balance Sheet. For them to compete here, i think they might, jim, need to find a partner in some way if theyre going to move up significantly from 74. 50. Great call. I think that dollar gen, again, you can make a case when you look at what the two companies, well, why is dollar gen up . Wall street said this was the natural. The whole time almost as if Dollar General was saying, its lets see these two guys, maybe they duke it out, maybe we come in. But this combination has been one i never thought dollar tree was going to be involved to begin with. Natural, Dollar General, weve talked about it so long on the show as you know there were rumors. But oftentimes i was in a position of saying, no, theyre really not talking. But they always thought it was there for them. And the decision, as scott pointed out to step down, came into the mix here i think. But when you read the proxy, which was just out, we were talking about last week, you see Dollar General did not know. Of course dollar tree was in advanced negotiations and kind of believed eventually the deal would be there for them. As we pointed out last week when we read that language i said to you, only get one shot. If you lose this opportunity, youre not going to get another one. The other david, i love your insight, too into this other issue that seemed to emerge from the filing the other day, and that is that while Dollar General may have been considering making some kind of bid, they may not have wanted to negotiate whatsoever with carl icahn involved in the mix at all. And im sure you have thoughts on that topic as well, because i found that very interesting, and im sure you do as well. Yeah. Listen, you know, i kind of you know, scott, has made a lot of money quickly in the name as a result offing size in Family Dollar, sole down the position as we also know, choosing not to play the juror here, deciding to use capital elsewhere. I dont know how much, if any, Dollar General he owns or whether hes a beneficiary today, as we watch that stock most likely go higher, as its Investor Base response p positively to the prospect of acquiring Family Dollar. Pelsto the original name in 2011, still in there. Theres a lot more to come, would be my sense. Family dollars not going to say anything at this point. There is no shortage of i guess tension between two companies to a certain extent, the best way to view it. I did bring it up with the phone call this morning. He says its all water under the bridge and want to leave the water under the bridge. Well see what happens in terms of him and the family, of course, Family Dollar. And that will be continuing to be jim, in a management position in the combined company with dollar tree. The guys got nine lives. Ever a moment where walmart sits back and says, or target, this is the area amazon cant kill you this that is price point amazon cannot afford to play. We have to just instead of spending billions on websites, lets just go, game, set, match, own the dollar segment, not justify the 7 to 10 segment . You know that would be a departure for walmart to enter into a hostile, contested bidding situation, not to mention they have time and again they want to develop the business organically. Dollar general, given the synergies available, isnt in a position to pay a high price. Not that they dont have the need perhaps, jim, but they seem to be going about it in a different way. My sense is this is where the thing sort of ends. Well see what dollar trees capable of doing, given levered on the Balance Sheet for the original deal. One think i question, do deals happen like this because youre away . Yes, ever time. Hes not really away. If i was in today, as i originally planned, im sure nothing going on. Not that we wouldnt have plenty to talk about. Just incredible. Get back to your vacation, whatever youre doing. But thanks for calling in. Appreciate the insight. Into this developing story. Thanks for sitting in. See you tomorrow, jim. Talk to you soon. This deals incredible. What happens is, people at home are so used to seeing, how much will Dollar General be down this morning because theyre upping, no. Because people recognize, if you want to grow your business, youre not going to grow it by putting up more stores. Youre going to grow it by shutting stores of a combined company. I think that the headline clearly is, this is only the beginning, as i said and david certainly said, remaybe mains to be seen. Great point throwing walmart into the mix. From a regulatory standpoint, Dollar General being the biggest and Family Dollar, if youre saying wait a minute, how could that happen . Youve got walmart getting smaller. Right. Theyre the ones competing most directly with these dollar stores. Regulators will say, this they can all compete together. There was a New York Times oped or wall street, i forget which, saying this would be a mistake having dollar gen merge because we need competition. The reason i inject walmart, when i go over the walmart call, which was nothing to write home about, one area theyre doing well is neighborhood store. Neighborhood stores, yes, its really what david says, he nose walmart better than anyone in the country, quite a departure for walmart to do anything. Guess what, walmart needs to do quite a departure from anything that its doing. Well follow that story. Any more developments uhoh. Kate kelly. Breaking news. Kate . Scott, breaking news at point 72, which is the Family Office that survived s. A. C. Capital, the wellknown hedge fund. The number two executive, and longtime deputy to steve cohen, is stepping down today abruptly. Hell be replaced by Douglas Hanes who joined the firm in february as managing director of human capital, hiring of course a priority in recent years as the firm faced regulatory and legal issues and late last year, paid a large fine for Insider Trading charges to settle those totalling with civil and criminal penalties 1. 8 billion. Hell stay on to the end of the year to ensure orderly transition. This raises questions about the issue withstanding at term or regulatory chapters. The only thing outstanding is a civil case between cohen and the s. E. C. Which is yet to be settled and the u. S. Attorney says investigations are continuing. One note, ive just got aint hold of internal email from steve cohen talking to employees about the move and he says its mutual and amicable. He says 2008 financial crisis and 2010 aftershocks tested us and we were rocked by revelation of Insider Trading by former employees. Describes this as having been the toughest chapter in the firms history. Steve cohen, you rarely hear from directly. All right. Kate, thank you so much. Kate kelly with latest there. Shrinking firm. Best to run as a family organization, stay out of the crosshairs. No one wants the crosshair of the government Justice Department. People a. At home have to recognize the Justice Department calls, its like, there goes my life. Yeah. Its like if e. F. Hutton calls, people listen. Remember that. Coming up, Rupert Murdoch sounding off on twitter about google. Wait until you see what he tweeted. Well fill you in. Futures, there you go, looks like its a big open on the street. Dow with implied open, up 100. More squawk on the street live from post nine at the New York Stock Exchange when we return. Fd where the reward was that new car smell and the freedom of the open road . A card that gave you that im 16 and just got my first car feeling. Presenting the buypower card from capital one. Redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac with no limits. So every time you use it, youre not just shopping for goods. Youre shopping for something great. Learn more at buypowercard. Com futures up sharply, as we said this morning, as the threat of escalation of tensions between russia and ukraine appear to be easing. Worries about the crisis resulted in a volatile session on friday in which the dow fell 138 points, before recouping most of the losses. Stocks finished the week on the plus side. Nasdaq closing up 2. 2 , its biggest oneweek advance since may. Were not getting good stuff out of russia. Tensions are easing. On friday, the stock dropped like a stone on a headline. Its a little bit tiresome to have sloppy reporting. Convoy attack, no convoy attack, driven out rebels, rebels doing okay, russia about to rescue rebels. Were trading on as if we know something. I thought look, there was a little bit of a notion that merkel talked to putin, two sides are talking. Can there be as much talking at the same time have a hot war . Well, yes, you see the japanese diplomats going down the steps right before 1941. The fact there is talk is making it so theres a recognition maybe something could be happening that is recognition that maybe theres a stalemate, and this market as much as we like to think its about jackson hole, the Federal Reserve, as much as we like to think its about yellen, its as much about russia ukraine. Going to kiev, i ought to have ply apple, kiev weather. Honestly, were fooling ourselves. This is all about kiev. Its difficult to get a story out. We watched germany up. We saw the ruble go up, give peace a chance. Could you blame people for saying, you know what, i made a lot of money in the market last year, this year hasnt been that bad either. Why bother . I am out. I watched biogen, celgene, regeneron, these Companies Keep winning, biogen, new m. S. , gill add look like defeated patent challenge, regeneron, the drug works well with statin. Btk, incredible. Its where the stake is. Btk. You made the point on friday night, i believe, youve got to know when to ring the register, right . If you had some big gains, you cant fault people for seeing headlines and all of the stuff, its time to take stuff off the table. Im doing all oil on mad money stocks have fallen so bad. You did have to ring the register, oil did collapse. If oil stabilizes, 95, those stocks are going to be good. We see buyers coming in, schlumberger, last time we heard schlumberger, 118 target then the stock goes down. Ringing the register in oils was good but you might have to circle back to stuff that go overly rung from the register. Youll talk about energy. You had a leadership group, stocks doing well, sold off. Some peep people talking about maybe theres a circle. You have go back. To that sick ter. Nat gas, its cool. I thought i ought to have a coat on. I wore a coat for the a. L. S. Challenge in part because it was chilly out. Yeah. Also because it was more standout than the golf shirt that you wore. A golf shirt. That was weak. I do think, in the end, yeah, you know, im watching stocks go up that are speculative. Its a tech myra note, suntrust, more than just ebola. Ive seen too many situations right now where people get excited and it would be good to ring the register except biotech, an endless amount of money going. People ringing the register, monster beverage, too soon. Thats a good situation. Our buddy, looked like he was going surfing. I had my dress pants on. The idea that you should do that challenge with stuff, if i could throw you in a pool, yeah, he was ready for it. The idea was if not, it was zaina. Stay focused is important. Cramers mad dash. Another look at futures. It looks like its going to be a big monday on wall street off the open theres the dow. Plus 96. S p and nasdaq following suit. More squasquawk on the street straight ahead. In a world thats changing faster than ever, we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. We do . I took the trash out. I know. And thank you so much for that. I think we should get a Medicare Supplement insurance plan. Right now . [ male announcer ] whether youre new to medicare or not, you may know it only covers about 80 of your part b medical expenses. Its up to you to pay the difference. So think about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans, they help cover some of what medicare doesnt pay and could really save you in outofpocket medical costs. Call now. With a Medicare Supplement plan, youll be able to stay with your doctor. Oh, you know, i love that guy. Mmhmm. [ male announcer ] these types of plans let you visit any doctor or hospital that accepts medicare patients. And there are no networks. You do your pushups today . Prepare to be amazed. [ male announcer ] dont wait. Call today to request your free decision guide and find the aarp Medicare Supplement plan to go the distance with you. Go long. All right, seven minutes to go before the opening bell. Time for cramers mad dash as head of the market own. A thin market a huge call by Goldman Sachs that says, semi cycle may be peaking, get cautious, is going to drive stocks down. And xpi downgraded to sell. Ma maxim. Hes been negative, and the groups been a smoke show. Youve got to be careful. But this is whats going to get people freaked out. Lots of fear of