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DigitalOlympus.com Comments on Apollo, Cooper Dispute over $2.5 Billion Price In Tire Deal

Press Release   •   Dec 02, 2013 19:31 EST

Sequel to a recent news story by Aradhana Aravindan and Mridhula Raghavan published on October 7 on reuters.com regarding the conflict between India's Apollo Tyres Ltd and Cooper Tire & Rubber Co over if Apollo can cut the price for its planned acquisition of the United States company, in the recent hiccup in a transaction plagued by legal bouts and other matters.

According to the reuters.com news piece, under the earlier $2.5 billion transaction signed in June, Cooper shareholders are liable to receive $35 per Cooper share, a premium of over 40 percent to its price at that period. Cooper shares earlier soared towards the takeover price though it has lost about 15 percent from that latest summit, as difficulties to the transaction surfaced, which consist of its disapproval by its employees.

“Takeover deals can turn out to be complicated at times,” says DigitalOlympus.com principal researcher Josh Cole. “Prior to an agreement firms about to go into transactions can hire experts that specialize in due diligence investigation to enable them establish situations surrounding a firm’s buyout.”  

In addition, Aravindan and Raghavan’s report indicates that “Cooper investors, who are fast losing confidence in the deal, say the company is still in play given industry consolidation, with one shareholder suggesting that the American tire maker should buy Apollo instead. Apollo has sought to reduce the price it would pay to by more than $2.50 per share, Cooper said in a filing to the U.S. Securities and Exchange Commission on Monday.”

In a statement following the report, DigitalOlympus.com spokesperson suggests that the price argument can be resolved if the two firms involved, Apollo and Cooper, can sit to renegotiate. “Any of the two companies also have the option of hiring a company that specializes in business intelligence on how to go about the deal,” he said.

As a finance and technology research blog, DigitalOlympus.com is dedicated to promoting the adoption of asset search policies and procedures that can help companies improve their practices with respect to records and internal controls.


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DigitalOlympus.com is a news blog dedicated to educating its readers on the latest technology and business advances. They are committed to gathering information on up and coming technologies and business decisions that will enhance the lives of their readership. Digitalolympus.com is always at the forefront of technology, and business news and events guiding its readers to accurately determine the best course of action for themselves and their businesses.