Regions

Cooper Tire asks court to require immediate close of its deal with Apollo

October 4
9:11 PM 2013

Cooper Tire & Rubber Co requested the Delaware Chancery Court to compel India's Apollo Tyres to close its buyout transaction of the American company soon. This was according to the company's court filing, reported Reuters.

The shares of Cooper Tire had fell 9% in extended trading as the action was the latest sign of a troubled merger. Currently, the stock had been trading more than USD9 off Apollo's USD35 per piece offered price. The transaction had faced opposition from workers in China and from demands made by US labor organizations.

In a statement on Friday, Copper said that Apollo was delaying to settle the issues with its workers. Apollo delayed settlements with workers from the United Steel Workers union. The workers had asked that the new agreements be drawn up between them.

Cooper Tire shareholders had approved of the sale to Apollo earlier this week.

Cooper Chief Executive Roy Armes said in a statement, "With their approval, we have met our conditions for closing. The complaint filed today is a necessary step in the process to assure that the terms of the merger agreement are met as required and that we do everything possible to get the transaction closed promptly.

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