Wednesday, April 23rd5.9°C
20923
20950

Cooper Tire ends buyout agreement with Apollo Tires valued at $2.2 billion

FINDLAY, Ohio - Cooper Tire & Rubber Co. is calling off its proposed $2.2 billion sale to India's Apollo Tyres, a deal that would have created the world's seventh largest tire company.

The Findlay, Ohio, company said Monday that financing is no longer available and continues to claim, as it has for months, that Apollo breached the terms of the agreement.

The boards of both companies and Cooper shareholders had approved the buyout, but negotiations with the union representing Cooper employees became a sticking point.

After Apollo sought a better price citing labour issues in China and weaker profit, Cooper accused the company of stalling.

Cooper took its claim to a Delaware court, but the court ruled last month that Apollo did not breach its obligation to quickly reach a pact with the United Steelworkers union.

Cooper did not further elaborate Monday on how it believes on how Apollo ignored terms of the deal and did not immediately respond to a request seeking comment.

The company did say that it's become clear that the deal signed in June will not close.

"The right thing for Cooper now is to focus on continuing to build our business," Chairman and CEO Roy Armes said in a statement Monday.

Shares of Cooper fell 4 per cent, or 96 cents, to $22 before markets opened, close to the trading low for 2013.

Company shares soared to nearly $35 in June after it announced the buyout, but they have fallen steadily since then. Monday's pre-market drop put the stock down about 15 per cent so far this year.

The Canadian Press


Read more Business News

20344


Recent Trending




Today's Market
S&P TSX14555.97+62.29
S&P CDNX1004.887.67
DJIA16514.3765.12
Nasdaq4161.458+39.912
S&P 5001879.55+7.66
CDN Dollar0.9065-0.0003
Gold1284.30+3.7001
Oil102.15-2.22
Lumber336.70+1.40
Natural Gas4.731-0.008

 
Okanagan Companies
Pacific Safety0.105-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.21-0.06
Cantex0.05+0.005
Anavex Life Sciences0.385-0.005
Metalex Ventures0.080.00
Russel Metals31.17+0.47
Copper Mountain Mining2.380.00
Colorado Resources0.26+0.005
ReliaBrand Inc0.11+0.03
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.25+0.02

 





FEATURED Property
1856018#36 153 Salmon Arm Drive
3 bedrooms 2 baths
$189,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Learning to flirt with the edge

With all of the adventure activities I have done and still do, I wonder sometimes if the edge still exists. The systematic approach to learning a new adventure or extreme activity combined with the r...


Time spent prospecting

How much time should you put into prospecting? The question is a bit of a puzzle. Ideally, there would be a reference book that lists, by industry, how much time you should invest in prospecting acti...


Valuation fears grip markets

The Big Picture Valuation fears grip markets Growing concerns about the level of stock market valuations sparked a risk-off trade in global markets this week. Investors are worried that many companies...

_



20956




Member of BC Press Council