Charles River Scraps WuXi Takeover Bid

Citing investor opposition, Charles River Laboratories (NYSE: CRL) is scrapping its $1.6 billion takeover offer for China's WuXi PharmaTech (NYSE: WX). The deal would have been the largest takeover of a Chinese company by a foreign firm.

Charles River, a provider of research and testing services to pharma companies, will pay WuXi a $30 million breakup fee. Massachusetts-based Charles River also said it will repurchase $500 million of its own shares.

Jana Partners LLC, Charles River’s largest stakeholder, told investors to oppose the deal. Shares of Charles River have lost 20% since the deal was announced in April, according to Bloomberg News.

RiskMetrics Group said this week that shareholders should vote against the deal because the price was too high, Bloomberg reported.