Baxalta Reportedly Abandons Takeover Talks With Ariad Pharma

(RTTNews) - Baxalta Inc. (BXLT), the drugmaker fending off a $30 billion takeover offer from Shire Plc (SHPG, SHP.L), has abandoned its pursuit of Ariad Pharmaceuticals Inc (ARIA) after negotiations broke down over price, Bloomberg reported citing people familiar with the matter.

Talks between the companies ended earlier this week and there are currently no plans to resume negotiations. Baxalta had been discussing an acquisition of Ariad that would have valued it at close to $2 billion.

As well as disagreements over price, Baxalta also backed off after receiving negative feedback about the prospect of a takeover of Ariad from some of its own investors, the report said.

The report indicates that it is unclear how the decision may affect Shire's efforts to acquire Baxalta, but calling off negotiations with Ariad won't change Baxalta's stance on a deal with Shire.

Last Month, Baxalta rejected an unsolicited $30 billion takeover bid from Ireland-based pharmaceutical company Shire plc, saying that its board of directors determined the offer was not in the best interests of Baxalta or its shareholders.

BXLT is currently trading at $34.43, down $0.18 or 0.52%.

ARIA is currently trading at $7.55, down $1.55 or 16.99%.