Takeover Talks for Computer Sciences End

The computer consulting firm's shares plunge in premarket trading.
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Military contractor

Lockheed Martin

(LMT) - Get Report

and a group of private-investment firms have ended their discussions to take over consulting and services firm

Computer Sciences

(CSC)

, according to reports published during the weekend.

Wall Street took the news hard. Shares of Computer Sciences were plunging in premarket trading, dropping $6.85, or 12.5%, to $48 -- below the level where the stock traded before reports of the possible bid emerged earlier this month.

Computer Sciences wanted talks to begin at $65 a share,

The Wall Street Journal

reported. That would have valued the company at about $12 billion. Warburg Pincus, Texas Pacific and Blackstone Group were involved in the talks with Lockheed, the reports indicated. The ending of the talks was also reported by

Reuters

.

Earlier reports had indicated the buyout group might bid for the entire El Segundo, Calif., company and then break it up into parts.