Cooper Tire & Rubber Co. has been sued by one of its investors in a bid to block the company’s $2.5 billion takeover by Apollo Tyres Ltd.
The Booth Family Trust, according to Bloomberg, claims Apollo’s $35 per share offer wasn’t high enough. At least three law firms have been publicly trolling for other disgruntled Cooper shareholders, looking to file similar suits.
According to the Bloomberg report, the Booth Family Trust said in a filing at Delaware Chancery Court in Wilmington: “The proposed transaction is the result of an unfair process [and] was negotiated and entered into in bad faith…”
Cooper spokespeople reportedly declined to comment, citing a corporate policy not to comment on litigation. Shares in Cooper fell 1.4% to $30.55 on the day Bloomberg published the report.
While this is $5 short of the purchase price Apollo has offered, the fact that analysts had already questioned whether or not $25 was too high when initial speculation began at the end of 2012 suggests that this is still some way above what others see as a fair price. (Tyres & Accessories)
