Cooper counters Apollo offer reduction talk with statement

On October 7th, Cooper Tire & Rubber Company issued a statement regarding the pending merger with Apollo Tyres, in which Cooper makes it plain that it believes that a reduction in share price is unwarranted. The statement, in full, reads as follows:

“Cooper, in its filing on Friday, October 4, is acting in the best interests of its stockholders, who overwhelmingly approved the pending merger with Apollo for $35 per share. As outlined in the complaint, Cooper rejected Apollo’s efforts to obtain a reduction in share price. Cooper does not agree that any such reduction is warranted.

“We are pleased that Apollo shares Cooper’s commitment to the strategic merits of the transaction. The situations with the United Steelworkers (USW) and the joint venture partner and union in China are a direct result of the merger agreement, and are risks Apollo assumed under the merger agreement. The situation with the USW can be resolved in a timely manner, and we ask that Apollo proceed expeditiously toward resolution, working with Cooper.

“With respect to China, Cooper explained in the complaint filed on October 4, and in an earlier proxy statement, that the company has been prevented by the joint venture partner and union access to certain operational and financial information. We continue to work toward resolving the issues in China through communication with the workers, union and the joint venture partner. Cooper looks forward to closing this compelling transaction, which will provide multiple benefits to both organizations, their employees, customers and communities.”