According to a ruling of the Delaware court last Friday, Apollo Tires Ltd did not breach its obligation to close its buyout of Cooper Tire & Rubber Co as was originally agreed upon between the parties.
Judge Sam Glasscock rejected the allegations by Cooper that Apollo was deliberately dragging its feet in discussion over the USD2.5 million buyout, claiming that Apollo's negotiations with United Steel Workers was being used as leverage to lower the buyout amount.
Cooper sought that Apollo be ordered to accept the labor agreement Cooper had negotiated. It also asked the court to order Apollo to complete the buyout deal in its original terms. At the outset, the parties projected in June that the deal would be completed by October 4.
In a statement, Apollo said, "We are pleased that the Delaware court has found that Apollo is not in breach of its merger agreement with Cooper Tire. Apollo continues to believe in the merits of the combination and is committed to finding a sensible way forward."
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