Report: Apollo Making Run To Acquire Cooper Tire

In news that sent waves through the global tire industry, India's Economic Times today reported that Apollo Tyre "is in the process of acquiring" Cooper Tire & Rubber Co.

The newspaper said that “sources with direct knowledge” stated that Apollo is working to acquire “a controlling stake in Cooper” in a deal that “could be in the range of $600 million to $800 million.”
  
If such a deal came to pass, it would create a company with an estimated $6.1 billion in global sales – making it the world’s seventh-largest tire company – with three major tire brands and a footprint that touches the U.S., Europe, South Africa, India and China.
  
For 2011, Cooper posted sales of $3.9 billion, placing it ninth on the global list, while Apollo, which also owns Vredestein, had sales of $2.2 billion, putting it in 16th spot, according to Tire Review data.
  
Earlier this month, Apollo said it would raise some $150 million via “placement of shares to qualified institutional buyers.” The Economic Times said that, “Sources suggest that Apollo Tyres could be raising close to $600 million of debt,” and that the adviser to the deal “has already initiated the process.”
  
Apollo Tyres spokesperson Rohit Sharan said Apollo “would not comment on market speculation.” At press time today, Cooper had not issued any statement.