Cooper Claims Union Deal, Apollo Says Not So Fast - Tire Review Magazine

Cooper Claims Union Deal, Apollo Says Not So Fast

Cooper Tire & Rubber Co. claims it has reached an agreement with the USW regarding its planned sale to Apollo Tyre Co., and is now pressing Apollo to sign off on that deal and proceed with the $2.5 billion acquisition.

Just days away from Cooperv. Apollo reaching a Delaware courtroom, Cooper Tire & Rubber Co. claims ithas reached an agreement with the USW regarding its planned sale to Apollo TyreCo., and is now pressing Apollo to sign off on that deal and proceed with the $2.5 billion acquisition.

In order to complete itsdeal for Cooper, Apollo was required to work out new contracts with the USW atCooper plants in Findlay, Ohio, and Texarkana, Ark., per a successor clause inCooper’s master contract with the union. This situation and on-going problemswith Cooper’s joint venture tire plant partner in China were points of concernfor Apollo, leading to Cooper filing suite on Oct. 4 to force the acquisitiondeal to be consummated.

Now is appears Cooper workedout a new contract with the union.

Apollo is calling the “deal”a “last-minute stunt,” and has refused to move forward on the acquisition. Inpapers filed this morning in Delaware Chancery Court in Wilmington, Del.,Apollo said it “objects to this last-minute hijack of this expedited litigation.”Apollo attorney Christopher Lyons told the court that Cooper was “attempting toinsert an entirely new set of issues into the case before the Nov. 5 trial,”according to a Bloomberg report.

“Apollo is currently usingits best efforts to delay the transaction, is adding conditions to closing notfound in the merger agreement, and is deliberately preventing the merger fromclosing,” Cooper attorney John Sensing said in the filing, according toBloomberg.

Cooper claims that Apollo “shouldbe compelled to consent to the new agreement reached with the UnitedSteelworkers on Oct. 30 and then be required to consummate the merger,” thereport said.

A three-day trial to hearthat suit is scheduled for Nov. 5-7 in Delaware Chancery Court.

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