Report: Investor sues Cooper over ‘too low’ Apollo bid
Cooper Tire & Rubber Co. was reportedly sued by one of its investors in a bid to block the company’s $2.5 billion takeover by Apollo Tyres Ltd., saying the offer of US$35 wasn’t high enough. According to a 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 Tire spokespeople reportedly declined to comment, citing a corporate policy not to comment on litigation. Shares in Cooper Tire fell 1.4 per cent to $30.55 on the day Bloomberg published the report. However, while this is $5 short of the purchase price Apollo has offered, the fact that analysts had already questioned whether or not US$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.
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