According to a Mint report, Apollo Tyres Ltd and Cooper Tire and Rubber Co. are making a last-ditch effort to salvage their $2.5-billion acquisition deal and are likely to form joint teams to address the concerns surrounding it.
The report says that Apollo’s acquisition of the US firm seemed in doubt over public disagreements between the two firms. Apollo sought to lower the price of $35 a share following resistance to the deal by Cooper’s workers in the US and China, and Cooper responded by filing a case in a US court accusing Apollo of trying to back out of the agreement. “There seems to be some misunderstanding and both firms will address the issues jointly,” one of the persons said. “However, China remains a major bone of contention, considering the size of the market and the structure of the ownership there.”
Although both the companies are trying to work out a solution, if the problems in China are not solved, it would cast a shadow over the deal, this person said.
Read the complete Mint report here