It seems the deal between Private equity firm Apollo Global Management LLC and Cooper Tire & Rubber Co (NYSE:CTB) is nowhere to end as it enter into war of words as the two firms bargain over the price of the contract beset by labor issues in the US, and in China.
The deal which is initially a $2.5 billion acquisition of Cooper by Apollo, has been enter into a discussion in which both the companies are negotiating the price of the takeover. The Indian company said it may have to accept “unanticipated and significant costs” that were “well ahead of” those it was required to accept in the initial fusion deal. The company also added the US based company has approved to the Indian company that some price decrease is acceptable. The issue at the present is by how much.
While the US Company has claimed that the modification in any price was not warranted. In the Friday statement of the company said it had filed a protest in a U.S. court to press on Apollo to shut the takeover in a timely manner. The US based company has claimed that it had never settled that a decrease in share price is acceptable.
According to primary deal made previously CTB shareholders stand to get $35 on each of the company share, a payment of over 40% to its price before the takeover declaration, charging the deal at $2.5 billion.
Cooper Tire & Rubber Co (NYSE:CTB) said in a statement, the situations with union and the joint venture partner in China and the United Steelworkers (USW) are a straight effect of the fusion deal, and are threat the Indian company unspecified under the merger deal.
Currently the Indian firm is discussing the agreement with the USW, which correspond to Cooper workforce in the US, after a country judge ruled Cooper cannot trade two of its factories in US until a combined deal is reached between the purchaser and the members of the plants’ union. Cooper shares dropped -5.63% to $29.51 in last trading session.
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