Apollo Tyres shares up nearly 5 pc after US court ruling

MUMBAI: Shares of Apollo Tyres gained nearly 5 per cent today after the company received a favourable 'partial ruling' from a US court in its dispute with Cooper Tire over the proposed USD 2.5-billion merger agreement.

After surging 6.14 per cent intra day to Rs 76 on the BSE, the Apollo Tyres scrip finally ended the day at Rs 74.50, up 4.05 per cent. At the NSE, the stock ended at Rs 74.95, up 4.61 per cent.

Apollo Tyres had on Saturday said it has received a favourable 'partial ruling' from a US court in its dispute with Cooper Tire over their proposed USD 2.5-billion merger agreement and stated it is committed to finding a 'sensible way forward'.

"We are pleased that the Delaware Court has found that Apollo is not in breach of its merger agreement with Cooper Tire. Furthermore, the Court found that Apollo has used 'reasonable best efforts' to negotiate with the United Steelworkers ( USW) and that, contrary to Cooper's claims, 'nothing in Apollo's conduct indicates buyer's remorse'," Apollo Tyres had said.

Apollo continues to believe in the merits of the combination and is committed to finding a sensible way forward, it added.

In October, Cooper filed a complaint in Delaware Court of Chancery to push for completion of their merger and stated that the Indian firm was seeking to delay an agreement with USW, which represents Cooper employees at facilities in Findlay, Ohio, and Texarkana, Arkansas.

Apollo had denied this but sought price reduction in the USD 2.5-billion deal citing problems related to the US firm's operations in China and concessions to the workers' union but that was rejected by Cooper.