October 07, 2013
Cooper and Apollo disagree on details
The proposed acquisition of Cooper Tire & Rubber Co. by Apollo Tyres Ltd. is not going as smoothly as planned.
Cooper says Apollo isn't meeting the terms of the definitive merger agreement. On behalf of its shareholders, it has filed a lawsuit asking the Delaware Chancery Court to compel Apollo to "expeditiously close the pending merger between the two tire companies."
In response, Apollo claims that Cooper's actions, or inactions, as the case may be, are the reason the deal isn't getting done faster.
Their back-and-forth statements indicate the companies are not on the same page. Apollo says Cooper has acknowledged that "some price reduction" in the $35 per share offer is warranted. Cooper says it has made no such acknowledgement.
To read about what the companies are saying about each other, check out Modern Tire Dealer Editor Bob Ulrich's latest blog, "War of words: Apollo and Cooper respond to each other's claims."
Also, check out the initial report on the lawsuit by clicking on this link: "Cooper sues Apollo for dragging its feet."
What are your thoughts about the lawsuit in general, and the "official statements" from both companies in particular? Read the blog, then let us know what you think by leaving a comment. And don't be shy!
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