Cooper Tire terminates $2.5 billion sale to India's Apollo

U.S.-based Cooper Tire & Rubber Co (CTB) said on Monday it was terminating a proposed $2.5 billion sale to Apollo Tyres Ltd (NSI:APOLLOTYRE), marking the end of an agreement plagued by obstacles from the start. Cooper did not say if Apollo would pay a $112.5 million break-up fee, but said the Indian tire maker had breached a merger agreement between the two companies and added it would pursue legal steps to protect the company and its shareholders. That would continue a legal stand-off between two sides, whose relationship descended into acrimony soon after Apollo in June agreed to buy Cooper for $35 a share, hoping to transform itself into the world's seventh-largest tire maker and cut its dependence on domestic sales. "It is time to move our business forward," said Roy Armes, Cooper Tire's chief executive, in the statement.



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