/ Industry, News / Chinese side deal revealed on Cooper Tyre trial

Chinese side deal revealed on Cooper Tyre trial

Linked In Share
Chinese side deal revealed on Cooper Tyre trial

According to a witness, Apollo Tyres Ltd. sought to eliminate an obstacle to its $2.5 billion buyout of Cooper Tire & Rubber Inc. by offering to purchase Cooper’s Chinese unit for $147 million.

Apollo officials made the offer in hopes of overcoming the opposition of executives of Cooper’s Chinese joint venture to the $35-a-share acquisition of Cooper, Sunam Sarkar, Apollo’s chief financial officer, told Delaware Chancery Court Judge Sam Glasscock III yesterday at a trial over the faltering deal. The Chinese officials rejected the offer, seeking at least $200 million, he said.

Sarkar’s testimony about the effort to buy the Chinese unit, code-named “Project Charlie,” was intended to counter Cooper’s claims that Apollo suffered from buyer’s remorse after agreeing to buy the U.S.’s fourth-largest tire maker and now is seeking to torpedo the deal. Apollo made the offer to push the deal forward, Sarkar said.

Glasscock is being asked to decide whether labor troubles with the Chinese joint venture unexpectedly damaged the value of Findlay, Ohio-based Cooper’s business and provided a basis for Apollo to pull out of the acquisition or cut the price. The Gurgaon, India-based tiremaker demanded a $2.50-a-share price cut to complete the deal.

Cooper officials testified earlier in the case that they alerted Apollo executives that their Chinese partners might object to the buyout. Chinese officials have stopped making Cooper-brand tires at its facility and ceased uploading financial information to the parent company’s computers.

That means Cooper may have difficulty in producing third-quarter financial results and Apollo officials might point to that as a breach of the acquisition agreement.

The lack of financial information about the Chinese operation “raises accounting questions” over the buyout and leaves Apollo executives with no assurances about the “quality of the financial information they are getting” from Cooper, Cepielik, an accountant with Deloitte Financial Advisory Services LLP, testified. He was called as an expert by Apollo.

Via Bloomberg

by Aurel Niculescu (my Google+) - Friday, November 8th, 2013 - filed under Industry, News. Image credit: .
Linked In Share
Related Articles
apollo cooper trial tyre


Discuss: Chinese side deal revealed on Cooper Tyre trial

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

Mercedes-Benz ML Coupe spied
Mercedes-Benz ML Coupe spiedOur spy photographers have managed to capture the new ML Coupe on camera while it was being tested out on public ...
Mercedes-Benz GL-Class facelift smiles for the camera
Mercedes-Benz GL-Class facelift smiles for the cameraThe facelifted version of the Mercedes-Benz GL-Class has been recently caught on camera, while it was being tested out, by our ...
Jaguar XE spied once more
Jaguar XE spied once moreJaguar is currently testing out its baby sedan, the 2015 XE, which will become a rival for the BMW 3-Series, the Mercedes-Benz ...
Chevrolet will develop a new facelift for the Captiva
Chevrolet will develop a new facelift for the CaptivaThe North American based automotive giant General Motors has recently started the development of a new facelifted version of the ...
2015 Ford Mustang starts production today
2015 Ford Mustang starts production todayThe 2015 Ford Mustang has just started its production today, the 14th of July, 2014, in coupe body style, while the convertible ...
Mercedes-Benz C-Class was launched in Australia
Mercedes-Benz C-Class was launched in AustraliaMercedes-Benz has recently introduced the new generation of the C-Class in Australia where the cheapest model will go on sale ...
Audi A7 Sportback 3.0 TDI Competition introduced
Audi A7 Sportback 3.0 TDI Competition introducedThe German based automaker Audi has recently introduced the A7 Sportback 3.0 TDI Competition, a special edition which is ...
Recall roundup: Dodge and Jeep SUVs for fire risk
Recall roundup: Dodge and Jeep SUVs for fire riskA new recall has been announced by Dodge and Jeep and it’s affecting some SUVs because of a fire risk. According to the ...
[VIDEO] See a Ferrari California getting crashed during a test drive
[VIDEO] See a Ferrari California getting crashed during a test driveA Ferrari California has been recently crashed during an Italian test drive after its driver has lost control of the wheel and ...
Lamborghini Reventon replica goes on sale
Lamborghini Reventon replica goes on saleA white Lamborghini Reventon replica is currently looking for a new owner on the web who will have to pay approximately 50,000 ...
[Video] Jaguar Land Rover wants to bring video gaming in cars
[Video] Jaguar Land Rover wants to bring video gaming in carsIf you know your technicalities, the HUD term is already well coined – after it made the jump from high-end fighter jets to… ...
Tesla is surveying battery factory locations
Tesla is surveying battery factory locationsTesla Motors, the California-based US luxury electric car maker, is currently on the look for the construction site of the ...
McLaren P1 rendered with Formula One livery
McLaren P1 rendered with Formula One liveryA new rendering with the McLaren P1 is showing the hybrid supercar with a Formula One livery on its body, which is making it even ...
This is the Philippines’ first supercar, the Aurelio Automobile
This is the Philippines’ first supercar, the Aurelio AutomobileThe first supercar ever to be produced in the Philippines is named the Aurelio Automobile and it has just been ...
US: gasoline prices drop for summer traveling gains
US: gasoline prices drop for summer traveling gainsFor the first time in 10 weeks, gasoline prices have started to go down, even as the summer’s advent means more travelers are ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

Spied Mercedes ML Coupé 01
Spied Mercedes GL Facelift 01
Spied Jaguar XE 01
Spied Chevrolet Captiva Facelift 01
lamborghini reventon replica 1
aurelio automobile 1
Mercedes-Benz S 65 AMG Coupe´(BR 217), 2014
seat ibiza 30th anniversary edition 1
lamborghini aventador fire autobahn 1
white ferrari laferrari 1
mercedes-benz cla250 1
chevrolet corvette c7 tuning callaway 1

More automotive from inautonews
Our spy photographers have managed to capture the new ML Coupe on camera while it was being tested out on public roads. Mercedes-Benz is currently developing a direct rival for the BMW X6 which was first known as the MLC but now it’s said to be renamed as the ML Coupe. The model in question has ...
read more
Inautonews Editors Section
F1: Silverstone 2014, British Grand Prix preview
F1: Silverstone 2014, British Grand Prix preview"The key to a quick lap around Silverstone is a car that remains stable during direction changes, and one that is aerodynamically stable, because ...
What happened to Mitsubishi?
What happened to Mitsubishi?Mitsubishi Motors Corporation (MMC) used to be one of the biggest carmakers out there with models copied out eventually by the competition but it ...
F1: 2014 Austrian GP review
F1: 2014 Austrian GP reviewNico Rosberg's victory was a cold shower for many, despite the fact that Mercedes needed to work harder than at any other race this year. Some fans ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety Recall roundup: Dodge and Jeep SUVs for fire riskA new recall has been announced by Dodge and Jeep and it’s affecting some SUVs because of a fire ... US: NHTSA investigates 500,000 FordsThe second largest US automaker revealed the federal safety regulator is currently probing around ...
Safety Section