Cooper Tire moves US court to compel Apollo Tyres to close merger deal soon

Reuters Posted online: Saturday, Oct 05, 2013 at 0000 hrs
New York : Cooper Tire & Rubber Co said it filed a complaint in the Delaware Chancery Court asking that India's Apollo Tyres Ltd be required to close its acquisition of the American company in a timely manner.

Related: Apollo Tyres to acquire US-based Cooper Tire & Rubber for Rs 14,500 cr

Cooper shares fell 9 per cent in extended trading as the action was the latest indication that the merger was in trouble. The stock is now trading more than $9 off Apollo's $35-per-share offer price.

The deal has faced opposition from workers at Cooper's joint venture in China and from demands made by a U.S. labor union.

Cooper said on Friday that Apollo was looking to delay settling issues with its workers, belonging to the United Steel Workers (USW) union, who have asked that new agreements be drawn up between them and Apollo post merger.

Earlier this week, Cooper Tire shareholders approved its sale to Apollo.

"With their approval, we have met our conditions for closing," Cooper Chief Executive Roy Armes said in a statement.

"The complaint filed today is a necessary step in the process to assure that the terms of the merger agreement are met as required and that we do everything possible to get the transaction closed promptly," Armes said.