Cooper Tire Loses Lawsuit, Shares Fall
However, the $2.5 billion acquisition started facing trouble soon, with both parties hurling accusations at each other. The problem was triggered by an arbitrator’s order requiring the two companies to reach a new agreement with USW, the labor union that represents Cooper Tire’s workers in Findlay, Ohio and Texarkana, Ark. While Cooper Tire claimed that Apollo Tyres was intentionally delaying an agreement with the labor union to avoid the completion of the acquisition or to seek a better price, the latter claimed that it is trying to reach an agreement with USW, although it will take time.

According to the terms of the contract, if the acquisition does not culminate by Dec 31, 2013 and if neither party breaches the merger agreement, the agreement can be terminated without any penalty to either party.