Cooper Tire terminates merger agreement with Apollo Tyres - 13abc.com Toledo (OH) News, Weather and Sports

Cooper Tire terminates merger agreement with Apollo Tyres

Posted: Updated:

Cooper Tire & Rubber Co. is calling off its sale to India's Apollo Tyres, unraveling a $2.2 billion deal announced just over six months ago.
    
Cooper said financing is no longer available and it continues to claim, as it has for months, that Apollo breached the terms of the agreement.
    
Apollo threatened for the first time Monday to pursue legal remedies after the announcement, which it called disappointing.
    
Both companies agreed to the sale in June, but things deteriorated rapidly. Negotiations with the union representing Cooper employees became a sticking point.
    
Apollo sought a better price citing labor issues in China and weaker profit, which Cooper said was a stalling tactic. The Findlay, Ohio, company took its claim to a Delaware court, but a ruling last month found no breach of obligations on Apollo's part.
    
Cooper Chairman and CEO Roy Armes said during a brief, Monday morning webcast that Cooper never received a new offer from Apollo that came with committed financing.
    
Company executives vowed to pursue a reverse termination fee of $112.5 million and other possible damages. They do not believe the company owes Apollo a $50 million termination fee that was part of the initial agreement.
    
Cooper will return to court with Apollo to resolve some remaining issues, including whether Apollo made an appropriate effort to reach a deal with the union, said Chief Financial Officer Brad Hughes.
    
Apollo Tyres Ltd. said Monday that it had made "exhaustive efforts to find a sensible way forward over the last several months."

Company shares soared to nearly $35 in June after it announced the buyout, but they have fallen steadily since then.

  • Top StoriesMore>>

  • 419 Day celebrated on social media

    419 Day celebrated on social media

    Saturday, April 19 2014 7:14 PM EDT2014-04-19 23:14:37 GMT
    Saturday was April 19 or 4-19 and locals thought this was the perfect day to celebrate businesses in the 419 area code in person and on social media.
    Saturday was April 19 or 4-19 and locals thought this was the perfect day to celebrate businesses in the 419 area code in person and on social media.
  • Official search suspended, but friends still search for missing boaters

    Official search suspended, but friends still search for missing boaters

    Saturday, April 19 2014 7:10 PM EDT2014-04-19 23:10:34 GMT
    Official searches were suspended for two missing boaters have been suspended. But that's not stopping friends and family for looking for the missing men.
    Official searches were suspended for two missing boaters have been suspended. But that's not stopping friends and family for looking for the missing men.
  • Chrysler to build 3 new Jeep models in China

    Chrysler to build 3 new Jeep models in China

    Saturday, April 19 2014 4:55 PM EDT2014-04-19 20:55:51 GMT
    Fiat and Chrysler announced plans Saturday to build three new Jeep models in China for that market, the biggest for the vehicles outside the United States, as they attempt to boost sales in a country where they lag behind their competitors.
    Fiat and Chrysler announced plans Saturday to build three new Jeep models in China for that market, the biggest for the vehicles outside the United States, as they attempt to boost sales in a country where they lag behind their competitors.

Area Events Calendar

See It, Shoot It, Send It!