Cooper Tire sale hits roadbump
Tue, 08 Oct 2013 23:24:41 GMT —
On June 12 Apollo Tyres and Cooper Tire & Rubber Company entered into an agreement in which a subsidiary of Apollo would purchase Cooper in all cash transaction in the amount of $2.5 billion. That deal was to be finalized on October 4. One week before that on September 27 an Apollo executive told Cooper that Apollo wanted to pay an amount less than what was agreed to in June. Last Friday Cooper filed a complaint in a Delaware court asking the court to compel Apollo to complete the transaction. Cooper issued a statement explaining its position. "Cooper, in its filing on Friday, October 4, is acting in the best interests of its stockholders, who overwhelmingly approved the pending merger with Apollo for $35 per share. As outlined in the complaint, Cooper rejected Apollo's efforts to obtain a reduction in share price. Cooper does not agree that any such reduction is warranted."
Bloomberg news reported on Monday that Apollo has not completed labor negotiations with the United Steelworkers union and has expressed concern about not receiving information about Cooper's Chinese venture.