Ariad tumbles outright on nixed takeout talks; HeartWare shares plunge; Verint up a little

By Rebecca Melvin

New York, Sept. 2 – Ariad Pharmaceuticals Inc.’s convertibles tumbled on an outright basis and were mixed on swap on Wednesday as shares fell 17% on reports that Baxalta Inc. has dropped takeover talks for the Cambridge, Mass.-based oncology company over price.

Ariad’s 3.625% convertibles due 2019 fell to about 109.5 from about 120, according to pricing sources. On a swap basis, one source said the bonds came in, or contracted, about 0.25 point, but a second source said the bonds expanded, depending on delta.

HeartWare International Inc.’s convertibles, which have been very illiquid since an exchange for the paper in May, were seen lower after news that the medical device maker is making an acquisition. HeartWare shares plunged 21% on the news.

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 reversed early losses to end up 22 cents, or 1.2%, to $18.39.

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

Verint Systems Inc.’s convertibles were trading a little better during the session ahead of its quarterly results reported 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.

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