Bloomberg BusinessWeek this afternoon reported that the Delaware Supreme Court has rejected Cooper Tire & Rubber Co.’s appeal of a lower court judge’s decision in favor of acquisition suitor Apollo Tyre.
The court issued “a terse one-page statement today signed by Justice Randy J. Holland, dismissing the appeal of a ruling in Delaware Chancery Court,” according to the news service.
Holland wrote: “The court has concluded that this interlocutory appeal was improvidently accepted.” Further details on the statement were not yet available.
The decision was a surprise as it came three days before a scheduled hearing before the state supreme court. It is not clear what this ruling will mean to the entire acquisition deal or the future of either tiremaker.
Neither Cooper nor Apollo has issued any statement regarding the sudden decision. Tire Review is trying to obtain the full court statement.
Judge Sam Glasscock III of the Delaware Chancery Court ruled on Nov. 8 that Apollo did not breach terms of its $2.5 billion deal to buy Cooper, and had not been suffering from “buyer’s remorse” as the reason why it had not year closed its deal to buy Cooper for $35 per share.
The judge noted that his was a partial ruling, and the remainder of his decision is expected later that week.
To date the rest of Glasscock’s decision has not been revealed, perhaps because on Nov.12 Cooper filed an appeal of Glasscock’s initial ruling with the state supreme court.
Cooper sought an expedited ruling as Apollo’s financing commitments to support the acquisition would expire on Dec.31 at midnight.