Cooper Tire

Apollo-Cooper merger deal terminated; shares jump

Apollo-Cooper merger deal terminated; shares jump

Shares of Apollo Tyres Ltd jumped 4 per cent in early trade on Tuesday, after the U. S.-based Cooper Tire & Rubber Co terminated its $2.5-billion merger pact with the Indian tyre maker.

On Monday, Cooper Tire confirmed that it ended the agreement after the Indian company informed it that financing was no longer available for the proposed acquisition.

An analyst at Angel Broking termed the termination of the merger deal as a "positive development" for the Indian tyre maker.

Apollo, Cooper disagree over proposed $2.5bn acquisition deal value

Apollo, Cooper disagree over proposed $2.5bn acquisition deal value

Indian tyre-maker Apollo Tyres has argued that its proposed deal to acquire Cooper Tire & Rubber Co might slap it with significant and unanticipated costs well beyond those it was obligated to bear under the preliminary merger agreement -- a development that put the US$2.5 billion deal under uncertainity.

Apollo said Cooper had acknowledged to it that some price decrease was warranted, but the issue now was by how much. The Indian company also alleged that Cooper had misrepresented its management as well as control of its Chinese plant to Apollo as well as its own shareholders.

Cooper Tire shareholders approve $2.5bn asset sale to India’s Apollo Tyres

Cooper Tire shareholders approve $2.5bn asset sale to India’s Apollo Tyres

Paving the way for one of the biggest US acquisitions by an Indian firm, shareholders of Cooper Tire & Rubber Co. on Monday approved the proposed $2.5-billion sale of the Ohio-based firm to Apollo Tyres Ltd.

However, Apollo Tyres still have to seek green signals from the sides of the United Steelworkers union as well as the US firm's Chinese partner.

For acquiring Findlay, Ohio-based Cooper Tire at a premium of 43 per cent, Apollo Tyres will issue 7-8-year bonds backed by Cooper Tire assets. The Indian firm has plans to take on as much as $450 million in new debt.