Apollo Tyres Ltd. is seeking to cut its $2.5 billion offer to buy Cooper Tire & Rubber Co. after U.S. and Chinese workers challenged the takeover plan. The shares of Apollo rose.
Apollo said Cooper acknowledged the $35-a-share offer should be reduced and that “the issue now is by how much,” Gurgaon, India-based Apollo said in a statement yesterday. Findlay, Ohio-based Cooper denied it agreed to any need to cut the price.
Workers at Cooper’s majority-owned Chinese venture are still refusing to make products for Cooper since they went on strike July 13, and the U.S. company is unable to access operational and financial information there. Cooper’s Chinese partner, Chengshan Group Co., has filed a lawsuit for the dissolution of the venture, saying the sale to Apollo would undermine the venture’s operations. Cooper has said the litigation lacks merit.