Last Friday, Cooper Tire & Rubber Co said it had filed a complaint in a US court to compel Apollo Tyres to complete its USD2.5 billion acquisition agreement it had entered into with the US firm. With the deal, Apollo is seeking to create the seventh largest tire company in the world.
According to Apollo, it was disappointed by the legal action and it was working to complete the deal as soon as it could. In an emailed statement, "We are disappointed that Cooper had taken this unusual step and question their motives. The litigation simply has no basis."
The move by Cooper is the latest complication in the deal that had been fraught with opposition from its workers since the announcement was made. Cooper's suit was filed with the Delaware Chancery Court because it alleged that Apollow was dragging its heels with some of its labor from the United Steel Workers union. The union had asked that new agreements be drawn up between them and the company before the deal's conclusion.
In a statement, Apollo said, "We have been working diligently to assist Cooper in resolving its outstanding issues with the United Steel Workers. We look forward to closing as expeditiously as possible once we reach agreement with the USW and complete the marketing of our financing."
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