November 10, 2013
Court ruling makes only Apollo happy
Round one of the most recent court battle between Apollo Tyres Ltd. and Cooper Tire and Rubber Co. goes to... Apollo.
On Friday, Nov. 8, 2013, Judge Sam Glasscock III, vice chancellor of the Delaware Court of Chancery, ruled that Apollo was not in breach of its merger agreement with Cooper, which had filed a complaint to the contrary.
In addition, the court found that Apollo had used "reasonable best efforts" to negotiate with the United Steelworkers (USW), and that "nothing in Apollo’s conduct indicates buyer’s remorse." As you might expect, Apollo is pleased with the ruling.
"Apollo continues to believe in the merits of the combination and is committed to finding a sensible way forward,” said the company.
Cooper Tire, on the other hand, says it is disappointed with the decision. It is assessing its options with respect to this decision, and awaiting the court’s ruling on other open matters in this case.
On Oct. 9, 2013, the Delaware Chancery Court had ruled in favor of Cooper, determining that the company's request for an expedited hearing of its October 4 complaint against Apollo was not frivilous.
For more information on the merger agreement and the lawsuit, check out these links:
"Return volley: Apollo files a countersuit against Cooper."
"Apollo looks forward to court hearing w/Cooper."
"Cooper gets its way in court against Apollo."
"War of words: Apollo and Cooper respond to each other's claims."
"Cooper and Apollo disagree on details."
"Cooper sues Apollo for dragging its feet."