World Business : Apollo Tyres slips 8% as Cooper shareholders approve merger

Oct 01, 2013, 10.07 AM IST

Cooper Tire & Rubber Company on Monday announced that its stockholders voted to approve its pending merger with a wholly-owned subsidiary of Apollo Tyres with more than 74 percent of Cooper's outstanding common shares voted in favour of the transaction.

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Apollo Tyres slips 8% as Cooper shareholders approve merger

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Apollo Tyres slips 8% as Cooper shareholders approve merger

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Moneycontrol Bureau

Shares of Apollo Tyres fell more than 8 percent in early trade Tuesday after the shareholders of Cooper Tire approved merger with the Indian tyre manufacturer.

"Approximately 78 percent of Cooper's outstanding common shares were voted, with more than 48 million shares voted in favour of the merger, representing approximately 96 percent of Cooper's voted shares," Cooper Tire said in its release.

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When the USD 2.5 billion worth of deal gets finalised, the company will become the seventh-largest tire company in the world.

"We are pleased stockholders endorsed this compelling transaction, which will create a USD 6.6 billion leader in the tire industry with a strong global footprint that includes a presence in the world's largest tire market of North America as well as in the fastest growing geographies of India and China," Cooper Chairman, Chief Executive Officer and President Roy Armes said.

Cooper Tire and Apollo Tyres had announced the proposed merger on June 12, 2013 following unanimous approval by the boards of directors of both companies. The pending merger is expected to close by the end of this year, according to its release.

At 09:56 hours IST, the stock lost 5.4 percent to Rs 62.95 on the Bombay Stock Exchange.

(Posted by Sunil Shankar Matkar)