Apollo Tyres Ltd and Cooper Tire & Rubber Co had been at odds over the price reduction of Apollo for its takeover bid of the US firm. This was the latest hurdle seen for the deal to push through beset by lawsuits and labor issues, said a report from Reuters.
A deal was signed last June with an initial offer of USD2.5 billion. The deal states that Cooper shareholders would get USD35 per Cooper share which was a premium of more than 40% to its price at the time.
Cooper shares had initially climbed towards the buyout price but had lost around 15% from the recent peak. This was after obstacles emerged including opposition from union workers. The investors at Cooper were fast losing confidence in the deal while one shareholder suggested that the American tire maker should acquire Apollo instead.
In a filing made by Cooper last October 3, representatives for Apollo had informed the company that it wanted to reorganize the proposed price.
Apollo refused to comment regarding the Cooper filing.
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