Bets increasing for a rally in Apollo Tyres shares

Written by Reuters | Updated: Nov 28 2013, 20:27pm hrs
Some investors are buying call options for Apollo Tyres Ltd December series at 90 rupees on hopes its takeover bid for US-based Cooper Tire & Rubber Co will fail, multiple traders said.

Apollo cash shares are up 3.2 percent at 79.2 rupees, meaning these investors are betting the Indian tyre maker's shares will have rallied by next month.

Thomson Reuters and NSE data shows Apollo's call options at 90 rupees rose by 44,000 shares on Wednesday and have outstanding open positions of 204,000 shares. Cooper Tire is seeking a ruling from Delaware Supreme Court on Dec. 19 that would force Apollo Tyres to complete their proposed $2.3 billion merger.

Apollo had initially agreed to pay $35 per share for Cooper but is seeking to reduce the offer price.