Cooper Tire & Rubber Co (NYSE:CTB) Files Complaint Against Apollo
The Indian tire company, Apollo tyres acquired Cooper Tire & Rubber Co (NYSE:CTB) in a deal worth $2.5B. This acquisition has now turned into a verbal war. Both the companies have are haggling over the price of the deal that is fraught with labor issues in the U.S which is where Cooper Tire & Rubber Co (NYSE:CTB) is headquartered, as well as in China.
Apollo said that by the looks of it, their company will now have to bear certain costs that were unanticipated and are also very voluminous. They said that these costs were way beyond the ones that they were obliged to bear as part of the Initial Merger Agreement.
In a statement on Sunday, Apollo said that Cooper Tire & Rubber Co (NYSE:CTB) has agreed to what Apollo is saying and stated that a certain price reduction is valid. The question now is how much?
In reply to that, Cooper Tire & Rubber Co (NYSE:CTB) said that no price change was warranted and that they have now filed a complaint against Apollo in a United States court to ensure that the acquisition reaches closure as scheduled. The company said that they have not agreed to what Apollo is saying and that no reduction is the share-price is warranted.
Friday’s trading session
In Friday’s trading, Cooper Tire & Rubber Co (NYSE:CTB) dropped by 5.63%. The opening price of the shares was $31.24, which climbed to an intraday high of $31.49 and dipped to a close of $29.51. Approximately 64.06 million shares were traded on Friday while an average volume of 1.33 million shares were traded over a 30 day period. The 52-week low of Cooper Tire & Rubber Co (NYSE:CTB) is $18.38 and its 52-week high is $34.79. The company has a market capitalization of $1.93 billion.