Cooper Tire & Rubber, Apollo Tyres go to trial today over buyout deal

By Nicel Jane Avellana

Nov 05, 2013 01:44 AM EST

Trial of the case between Cooper Tire & Rubber Co and India-based Apollo Tyres Ltd would begin in a Delaware Chancery Court today. Judge Sam Glasscock III would be deciding whether if it would grant the request of Cooper Tire & Rubber to compel Apollo Tyres to agree to a new labor agreement. In court filings, Cooper said the labor deal reached last week would render the objections of Apollo in the transaction moot. Apollo, on the other hand, said the labor agreement was illusory. It also accused Cooper of trying to hijack the case.

The deal would have been seen as the biggest acquisition made by an Indian company in North America. However, discussions turned sour last month as US and Chinese workers opposed the deal. Citing labor issues, Apollo Tyres reduced its USD 35 per share offer by as much as USD 9. Findlay, Ohio-based Cooper Tire & Rubber sued on October 4 and claimed that the Indian company was delaying the close of the deal intentionally.

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