Dallas, Texas 11/14/2013 (Financialstrend) – Cooper Tire & Rubber Co. (NYSE:CTB) appealed in the Delaware Supreme Court on November 12, 2013 to rule on its delayed takeover by New Delhi, India based Apollo Tyres Ltd. by December 31.
Cooper Tire & Rubber Co. (NYSE:CTB)’s lawyers defended, “It threatens not just this $2.5 billion merger, and the expectation interests of Cooper’s shareholders, but the broader corporate community’s settled expectations regarding the requirement to use ‘reasonable best efforts’ to consummate a merger,” unless the ruling of Delaware Chancery Court is reversed.
Delaware Chancery Court Vice Chancellor Sam Glasscock III ruled on November 8 that all the contract conditions had not been met and hence Cooper Tire & Rubber Co. (NYSE:CTB) was not entitled to force India based tyre company to complete the $2.5 billion buyout. Cooper lawyers said in the filing that if the ruling that Apollo Tyres Ltd. has not materially breached the agreement would be allowed, Apollo may seek to terminate this merger.
The November 8 judgment was in connection with October 4 lawsuits filed by Cooper Tire & Rubber Co. (NYSE:CTB) alleging Apollo Tyres to intentionally delay the completion of buyout transaction citing Apollo officials were suffering from buyer’s remorse. However the largest acquisition by an Indian company in North America was curdled amid opposition from Chinese and U.S. workers, following which India based company sought to cut its price given the labor unrest.
Following Glasscock’s ruling, Cooper Tire & Rubber Co. (NYSE:CTB) said that it will continue to seek for the completion of transaction both parties had agreed to. Whereas the Apollo executives countered that Cooper is avoiding responsibility for the situation at its Chinese unit where labor unrest is barring the company officials from entering the units and workers have stopped manufacturing Cooper brand tires.
During Wednesday’s session the stock of Cooper Tire & Rubber Co. (NYSE:CTB) gained 1.08% to close at $24.33 with volume of 1.04 million shares.