Apollo Tyres to take Cooper Tire to court after US co ends $ 2.5 bn deal

Dec 30 2013, 22:35 IST
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Cooper Tire said Apollo Tyres notified the company that financing for the deal was no longer available. (AP) Cooper Tire said Apollo Tyres notified the company that financing for the deal was no longer available. (AP)
SummaryAnnouncement follows court ruling favouring Apollo Tyres in spat over merger with Cooper Tire.

USW, which represents Cooper employees at facilities in Findlay, Ohio, and Texarkana, Arkansas.

Apollo had denied this but sought price reduction in the USD 2.5-billion deal citing problems related to the US firm's China operations and concessions to the workers union, but these were rejected by Cooper.

In June, Apollo had announced it will acquire Cooper Tire & Rubber Co in an all-cash transaction valued at around USD 2.5 billion (nearly Rs 14,500 crore) and the merged entity was billed to become the seventh largest tyre maker in the world.

Commenting on the future roadmap, Armes said: "We look forward to continuing to execute on our strategy in 2014, and we have a very strong base from which to do thisbrands that are respected for quality, a loyal customer base, a flexible global network of manufacturing facilities, a skilled workforce, and top technical capabilities."

Armes further said: "Addressing the situation at Cooper Chengshan Tire (CCT) in Rongcheng, China is our top priority in the near term."

The issues at CCT were driven by the merger agreement, and with the agreement now terminated, Cooper is working independently to restore normal operations at CCT, including obtaining the information needed for Cooper to resume regular financial reporting as soon as possible, he added.

"Once the situation at CCT is resolved and regular financial reporting has resumed, Cooper will be in a position to address additional options for the deployment of capital targeted at returning value for our stockholders," Armes added.

Apollo Tyres said it was well-positioned for continued success and would pursue other growth opportunities around the world.

"Our business is performing well as evidenced by the strong top and bottom line results we reported last quarter and we remain focused on executing our standalone strategic plan to maximise value for Apollos shareholders," it said.

Cooper Tire terminates $2.5 bln sale agreement with India's Apollo


Mumbai/Bangalore: Cooper Tire & Rubber Co said on Monday it was terminating a proposed $2.5 billion sale to Apollo Tyres Ltd, saying the Indian tyre maker had failed to find financing for the transaction.

The termination, disclosed in a statement, marks the end of a failed agreement plagued by obstacles from the start. The Indian tyre maker in June agreed to buy Cooper for $35 a share, hoping to transform itself into the world's seventh-largest tyre maker and cut its dependence on domestic sales.

Cooper did not mention

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