Today is ‘D-Day’ for Cooper/Apollo deal

Within the next few hours, Cooper Tire & Rubber shareholders will cast their votes in favour or against Apollo Tyres’ bid to acquire the US tyre maker for US$2.5 billion. Although questions have been raised about the high leverage involved in the deal and objections to the takeover within the Cooper Chengshan factory in China remain unresolved after several months, financial experts expect shareholders to approve the deal.

“Because this is an all cash deal with a substantial premium to the pre-deal price the vast majority of shareholders will support this deal at this price,” Chris DeMuth Jr, portfolio manager at US-based Rangeley Capital, told Reuters.

Shareholders will receive $35 per share should the deal go ahead – this is more than 40 per cent more than they were trading at before the acquisition was announced in June.

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