Apollo Tyres loses court bid for dismissal of Cooper case

Apollo asked a judge in Delaware to dismiss the Cooper’s case, contending Cooper hasn’t lived up to its part of the bargain
Gurgaon-based Apollo Tyres lost a bid for dismissal of Ohio-based Cooper Tire and Rubber Co.’s lawsuit seeking to force a $2.5 billion takeover, paving the way for a trial in November, according to a media report.

Last week, Apollo asked a judge in Delaware to dismiss the Cooper’s case, contending Cooper hasn’t lived up to its part of the bargain and the $35-a-share deal shouldn’t go through, the report added.

In June 12, 2013, Apollo and Cooper announced the execution of a definitive merger agreement under which a wholly-owned subsidiary of Apollo will acquire Cooper in an all-cash transaction valued at approximately Rs. 145 billion.

Under the terms of the agreement, which had been unanimously approved by the boards of directors of both companies, Cooper stockholders will receive $35 per share in cash. The transaction represented a 40% premium to Cooper’s 30-day volume-weighted average price.

Apollo was facing problems with the United Steel Workers’ union in the US and in the Chinese joint venture, where workers objected the deal. Apollo asked Cooper to push the deal-closure deadline to 4 October.

Cooper filed a complaint in a US court last week, claiming that Apollo had initially sought a discount of $2.5 per share on the initial offer ($35) and later $8-9 per share and accused the Indian company of delaying the conclusion of the deal.