Cooper Tire, Apollo Tyres Agreement Grows Strained
Cooper Tire & Rubber Co. shares are plunging Monday as its $2.2 billion deal with Apollo Tyres Ltd. becomes more uncertain.
India's Apollo is seeking a lower price than the original $35 per share it offered Cooper because of added talks for union matters. It also says Findlay, Ohio-based Cooper has not provided enough information about a Chinese subsidiary.
Cooper says it does not agree with such a price reduction and it is working to resolve issues with its Chinese partner.
Investors are increasingly concerned that the deal could fall apart. Under the terms of the agreement, if the deal is delayed past Dec. 31 it can be terminated without penalty.
Shares of Cooper are off nearly 13 percent to $25.81 in afternoon trading.