Cooper Tire asks court to require Apollo to expeditiously close merger Cooper Tire & Rubber filed a complaint in Delaware Chancery Court asking that subsidiaries of Apollo Tyres be required to expeditiously close the pending merger between the two tire companies in accordance with the terms of the definitive merger agreement. Cooper stockholders voted to approve the pending merger on September 30, satisfying Cooper’s final affirmative condition under the merger agreement for closing the $2.5B transaction. The merger was announced on June 12 after the boards of directors of both companies unanimously approved the sale of Cooper to a wholly-owned subsidiary of Apollo for $35 per share. Cooper is asking the court to compel Apollo to take actions so that the transaction may close. Among other matters, the complaint says that Apollo is seeking to delay an agreement with the United Steelworkers. An arbitrator ruled on September 13 that Cooper and Apollo must enter into new agreements with the union prior to closing. By delaying resolution with the USW, Apollo is breaching the merger agreement. Shares of Cooper Tire fell $1.76, or 5.63%, to $29.51 during today's trade, with the weakness in shares attributed to speculation regarding problems with the merger.
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