According to a Reuters report, shareholders of Cooper Tire and Rubber Co would most likely approve the proposed USD2.5 billion takeover by Apollo Tyres Ltd. The acquisition was expected to form the seventh largest tire maker in the world.

Should the deal be approved, shareholders would be receiving USD35 per share of Cooper, which is a 40% premium on the US tire company's share price prior to the announcement of the acquisition.

Portfolio manager Chris DeMuth Jr, at US-based Rangeley Capital said, "Because this is an all cash deal with a substantial premium to the pre-deal price the vast majority of shareholders will support this deal at this price." Rangeley has a less than 5% stake in Cooper.

However, Apollo would be facing some hurdles in labor issues in the US and opposition from workers in a China-based Cooper joint venture Cooper Chengshan Tire Co.
Cooper, on the other hand, saw an almost 12% decrease in share price as investors show worry about whether the deal would push through. "You're putting pressure on the company by the amount of debt that they want to use to buy this. And so I think the market will always be skittish in the situation," Demuth had said.