Cooper Tire

Cooper Tire scraps merger plans with Apollo Tyres

Cooper Tire scraps merger plans with Apollo TyresCooper Tire & Rubber, which is based in Findlay, Ohio, has said that it will not accept sale of the company to India's Apollo Tyres.

Apollo Tyres, based in Gurgaon near New Delhi, had launched a $2.5 billion merger plan around six months earlier. Cooper said that the financing for the deal is not available and said that Apollo breached the terms of the agreement. Both the companies had agreed to the sale earlier in June but the deal began to fall apart after negotiations with Cooper employees did not proceed as planned.

Cooper Tire & Rubber shares fall 13% due to uncertainty over deal

Cooper Tire & Rubber shares fall 13% due to uncertainty over dealThe shares of Cooper Tire & Rubber fell as much as 13 per cent on Monday over uncertainties relating to its deal with Apollo Tyres.

India's Apollo has indicated that it is seeking a lower price than $35 per share it offered for the shares of Cooper in June due to additional costs and the union matters. Cooper, which is based in Ohio, US said that it does not agree to such a price reduction for its shares. Investors are concerned that the deal might not be finalised and the Indian firm might walk away.

Apollo shares jump on renegotiation of $2.5bn Cooper deal reports

apollo tyreExtending its Monday's 5 per cent rally, Apollo Tyres stock enjoyed another considerable gain in morning trade on Tuesday, on reports that the Indian tyre-maker is looking to renegotiate the terms of $2.5-billion Cooper Tire & Rubber Co acquisition deal.

The Indian tyre-maker recently said that the proposed deal to acquire the American tyre-maker might burden it with huge, unanticipated costs well beyond those it was obligated to bear under the original merger agreement. It also claimed that Cooper had acknowledged to it that some price decrease was warranted.

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