Talks between the two firms have now ended, according to the source. They follow a number of high-profile takeover approaches in the sector that are aimed at driving down the amount of tax paid in the U.S. by re-domiciling elsewhere.
The report states that Pfizer approached Actavis proposing a cash-and-stock tie-up, and it is not clear why Actavis decided against the deal.
It comes after the company admitted defeat in a multi-million dollar deal for U.K.-based AstraZeneca in May. The British firm rejected a series of offers and now Pfizer cannot resume its approach until early November, under U.K. regulation.
Read the full article here on the Wall Street Journal website.