Apollo Tyres Says Quick Cooper Appeal Ruling Isn’t Needed
Apollo Tyres Ltd. (APTY), which had agreed to buy Cooper Tire & Rubber Co. for $35 a share, told Delaware Supreme Court justices in a filing that there’s no need to fast-track the appeal of a decision in its favor.
A Delaware Chancery Court judge ruled Nov. 8 that all contract conditions hadn’t been met, and that he couldn’t force Apollo, which seeks a lower price, to complete the $2.5 billion buyout. Cooper appealed and asked the state’s top court to rule by Dec. 31.
Cooper needed to release third-quarter financial statements within 45 days of the end of the fiscal quarter -- by yesterday -- and hasn’t, Apollo lawyers wrote.
“Accordingly, neither Cooper nor Apollo is in a position to compel funding of the transaction financing,” and there is “no good cause” to hurry up the case, Apollo argued.
Cooper, based in Findlay, Ohio, said June 12 it would be bought by Gurgaon, India-based Apollo. When Apollo failed to close the deal as scheduled on Oct. 4, Cooper sued.
The financial release has been stymied by officials at Cooper’s Chinese subsidiary, Chengshan Group Co., which operates Cooper’s biggest plant and stopped making Cooper tires on July 13 in protest of the Apollo deal. The unit is barring Cooper officials from entering the facilities and won’t provide financial information needed to complete Cooper’s report.
“At most, Cooper could seek money damages, which does not require an expedited appeal,” Apollo contends in the filing.
Cooper fell 22 cents to $23.67 at 10:05 a.m. in New York trading.
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