Cooper Tire in tentative deal with workers over merger

Sat Nov 2, 2013 7:44am IST

An employee works inside the warehouse at the Apollo Super Zone showroom in Mumbai October 8, 2013. REUTERS/Danish Siddiqui

An employee works inside the warehouse at the Apollo Super Zone showroom in Mumbai October 8, 2013.

Credit: Reuters/Danish Siddiqui

Related Topics

Stocks

   

REUTERS - Cooper Tire & Rubber Co (CTB.N) said it reached a tentative agreement with workers represented by United Steelworkers union as part of its push to close its planned $2.5 billion sale to India's Apollo Tyres Ltd (APLO.NS).

Apollo called the labor deal a "last-minute stunt" to gain an advantage when the two companies square off in court next week over their failure to close their deal.

An arbitrator ruled in September that the sale could not close unless Apollo drew up a collective bargaining agreement with the union that represents workers at two Cooper plants.

Cooper has accused Apollo of dragging its feet in those labor talks so it would have an excuse to back out of the merger deal or seek a lower price for Cooper.

The Findlay, Ohio-based company sued Apollo last month in an effort to force the deal to close and to get a court order allowing Cooper to negotiate a labor deal that would bind Apollo. A trial in that lawsuit begins on Tuesday.

The new labor deal agreed to on Wednesday is subject to review by Apollo, as well as ratification by the union's membership, Cooper said in a filing on Friday.

In a Friday filing with the Court of Chancery in Delaware, where the companies agreed to litigate, Apollo said it "objects to this last-minute hijack of this expedited litigation and insertion of an entirely new set of issues." (Reporting by Mridhula Raghavan in Bangalore and Tom Hals in Wilmington, Delaware; Editing by Maju Samuel and James Dalgleish)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Election 2014

REUTERS SHOWCASE

Telecom Sector

Telecom Sector

RComm to raise mobile call tariff by up to 20 percent  Full Article 

Chinese Economy

Chinese Economy

China economic growth slows to 18-month low in first quarter  Full Article 

New Direction

New Direction

CEO Nadella pushes data culture at Microsoft.  Full Article 

Strong Sales Volume

Strong Sales Volume

Small is beautiful for Coca-Cola as volumes soar in China  Full Article 

Breakingviews

Breakingviews

Diageo throws money at Indian empire-building  Full Article 

Toyota's Performance

Toyota's Performance

After two bumper years, Toyota braces for shift to slower growth.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage