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>>

  • Autopsy results for BGSU grad found in landfill could take weeks

    Autopsy results for BGSU grad found in landfill could take weeks

    Wednesday, July 23 2014 8:13 PM EDT2014-07-24 00:13:56 GMT
    It could be weeks until we know how a BGSU graduate died in Cleveland. Friends say they last saw 22-year-old Cory Barron at a concert at Progressive Field over the weekend. Police found his body in a landfill Tuesday. Investigators say Barron may have crawled or fallen into a trash chute in the stadium. The Lorain County coroner's office is performing an autopsy, but officials say the results will take about three weeks. Family and friends will remember Barron Thursday night with a candl...
    It could be weeks until we know how a BGSU graduate died in Cleveland. Friends say they last saw 22-year-old Cory Barron at a concert at Progressive Field over the weekend. Police found his body in a landfill Tuesday. Investigators say Barron may have crawled or fallen into a trash chute in the stadium. The Lorain County coroner's office is performing an autopsy, but officials say the results will take about three weeks. Family and friends will remember Barron Thursday night with a candl...
  • Chinese lantern may have sparked N. Baltimore plastics plant blaze

    Chinese lantern may have sparked N. Baltimore plastics plant blaze

    Wednesday, July 23 2014 6:06 PM EDT2014-07-23 22:06:08 GMT
    Large stacks of plastic pallets in the yard of HPJ Industries on West Boundary Street started burning last Thursday around 11 p.m. sending massive flames more than 100 feet into the air for hours. 
    Large stacks of plastic pallets in the yard of HPJ Industries on West Boundary Street started burning last Thursday around 11 p.m. sending massive flames more than 100 feet into the air for hours. 

  • Cystic fibrosis drug being tested at Toledo Hospital

    Cystic fibrosis drug being tested at Toledo Hospital

     

    It's being called the greatest advance in the treatment of the fatal lung disease cystic fibrosis. 13abc's Melissa Voetsch has more on the future of a drug being tested at Toledo Hospital.

Area Events Calendar

See It, Shoot It, Send It!