Morning Commentary: Ariad in focus as takeout talks dropped; Whiting Petroleum better; Verint up

By Rebecca Melvin

New York, Sept. 2 – Convertibles players were watching the shares of Ariad Pharmaceuticals Inc., which were down 17% early Wednesday after reports that Baxalta Inc. is dropping its takeover talks for the Cambridge, Mass.-based oncology company over price.

Pricing on Ariad’s 3.625% convertibles was not yet available.

Elsewhere, Whiting Petroleum Corp.’s 1.75% convertibles were said to be a little better on improving investor sentiment.

Shares of the Denver-based oil and gas company were last down 41 cents, or 2%, at $17.70.

Goodrich Petroleum Corp.’s 5% convertibles were not trading after word that the Houston-based oil and gas exploration and development company is doing an exchange for $55 million of the convertibles.

Goodrich also received a non-compliance notice from the New York Stock Exchange relating to the minimum share price requirement. Shares were last down 2% at $0.82.

Verint Systems Inc.’s convertibles were trading a little better ahead of its earnings report expected after the market close. The Verint 1.5% convertibles due 2021 traded at 104.25 bid, 104.75 offered versus an underlying share price of $52.00, a Connecticut-based trader said.

The Verint convertibles were seen at 103.65 on Monday and at about 105 on Friday.

Shares of the Melville, N.Y.-based security and surveillance company were down 0.6% at $51.70 last.

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