NDTV Profits reported that a tentative agreement with workers of United Steelworkers union and Cooper Tire & Rubber Co was reached. The recent deal was reportedly seen as one of the crucial steps before closing the USD2.5 billion sale to India's Apollo Tyres Ltd. Apollo called the labor deal as a last-minute attempt to remove obstacles to conclude its planned merger. Apollo said the deal would equip Cooper once both companies square off next week in court after failure to close the deal.
In September, an arbitrator ruled that the sale could not be closed unless Apollo drew up an agreement with the union representing workers at both Cooper plants. Apollo was accused by Cooper of dragging its feet with regard to labor talks. According to the report, Apollo used this as an excuse to seek a lower deal price from Cooper or to back out of the merger altogether.
In an effort to force Cooper to close the deal, the Ohio-based company had sued Apollo last month. The trial is scheduled to begin by Tuesday.
Following the filing in the Court of Chancery in Delaware, Apollo said, "(Apollo) objects to this last-minute hijack of this expedited litigation and insertion of an entirely new set of issues".
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