Apollo Tyres’ shares gain on uncertainty over deal with Cooper
Shares of Apollo Tyres gained nearly 3 per cent on Thursday, thanks to ongoing uncertainty over the company's $2.5 billion acquisition deal with American tyre-maker Cooper Tire & Rubber Co.
At nearly 15:10 IST, shares of Apollo Tyres were trading at Rs 66.85 apiece, at a gain of 2.77 per cent, on the Bombay stock Exchange (BSE).
The stock hit intraday high and low of Rs 67.85 and Rs 65.60, respectively. The stock hit its 52-week high and low of Rs 101.50 apiece and Rs 54.60 apiece on 8th of May and 21st of June this year.
In the recent trading, the stock gained because of uncertainty over Apollo Tyres' plan to acquire Cooper Tire & Rubber Co. Investors are concerned that the heavy deal would hurt the financial health of the company, which has plans to fund the entire deal via debt.
Apollo recently filed a counter-claim against Cooper Tire's with the Delaware Court in the United States, denying the American firm's allegations that it is intentionally trying to delay the closure of the acquisition deal.
Cooper Tire accuses Apollo Tyres of experiencing "buyer's remorse" after primarily agreeing to pay $35 for each Cooper shares, which represents a premium of 43 per cent, and then asking for a discount of up to $9 per share. On the other hand, Apollo argues that it asked for the discount only to account for higher costs arising from talks with Cooper Tire's worker-unions.