 "Apollo Tyres surges 9% after Cooper Tire loses court bid to force merger")
Shares in Apollo Tyres rose as much as 8.2 percent Tuesday after Cooper Tire & Rubber Colost its US court bid on Monday to force the Indian tyremaker to complete their proposed $2.3 billion merger.
Under the terms of the merger, Apollo can walk away from the deal on December 31. Investors have worried a takeover of Cooper would lead to a strong increase in debt levels at Apollo.
[caption id=“attachment_1159181” align=“alignleft” width=“380”]
As per the original deal announced in June this year, Apollo had agreed to buy Cooper at$35 per share in an all cash transaction.[/caption]
The Delaware Supreme Court dismissed Cooper’s appeal against an earlier ruling that Apollo was meeting its obligations to reach new contract terms with unions at Cooper plants in Ohio and Texas.
Apollo, which would become the world’s seventh-biggest tire maker after the merger, wants to pay less than the $35 per share agreed in June because of demands by unions at Cooper plants and disruptions at Cooper’s venture in China.
The cases are Cooper Tire & Rubber Co v. Apollo (Mauritius) Holdings Pvt, CA8980, Delaware Chancery Court (Wilmington) and 624-2013, Supreme Court of Delaware (Dover).
Cooper Tire and Apollo Tyre could not be reached for comment.
Reuters