Magazine for the professional tire industry
Issue link: https://mtd.epubxp.com/i/244093
News/views dates February 19-22 Tire Industry Association OTR Tire Conference, Marco Island Marriott Resort & Golf Club, Marco Island, Fla. (800) 876-8372 www.tireindustry.org March 6 – 8 Louisiana Independent Tire Dealers Association Annual Convention and Trade Show, Bourbon Orleans, New Orleans, La. (225) 767-7640 www.litda.org March 14-16 Mid-America Tire Dealers Association Annual Convention, Drury Inn at Broadview Place, Wichita, Kan. (785) 286-1110 www.matda.org March 28-29 North Carolina Tire Dealers Association Annual Expo/Trade Show, Marriott City Center & Raleigh Convention Center, Raleigh, N.C. (877) 784-0111 www.nctda.com April 4-5 New England Tire & Service Association Trade Show & Convention, MGM Grand at Foxwoods, Mashantucket, Conn. (207) 846-0986 www.netsa.org April 4-5 Arkansas Independent Tire Dealers Association Annual Convention, Hot Springs Convention Center, Hot Springs, Ark. (501) 268-8473 www.aitda.net April 11-13 Virginia Automotive Association Convention & Trade Show, The Homestead, Hot Springs,Va. (804) 739-1400 www.vaautomotive.org April 23-25 Texas Tire Dealers Association Annual Convention & Services Display, Marriott Town Square, Sugarland, Texas (512) 343-8604 or (800) 844-8748 www.texastiredealers.org April 27-30 Battery Council International 126th Convention and Power Mart Expo, Manchester Grand Hyatt Hotel, San Diego, Calif. (312) 644-6610 www.batterycouncil.org 14 Cooper walks away from Apollo deal Cooper Tire & Rubber Co. ended its proposed sale to Apollo Tyres Ltd., on Dec. 30, 2013, citing lack of fnancing for the $2.5 billion deal and saying it will pursue damages against Apollo. According to Cooper Chairman, CEO and President Roy Armes, it is a "reality that the agreement both companies signed on June 12 will not be consummated by Apollo. Further, we have been notifed that fnancing for the transaction is no longer available." In a webcast to answer questions from investors, Armes said addressing the situation at Cooper's passenger and truck tire plant, Cooper Chengshan Tire (CCT) in Rongcheng, China, is the company's top priority. The plant is a joint venture between Cooper and Shandong Chengshan Group Co. Ltd. The Chinese workers have been producing non-Cooper branded tires to protest the deal, and the Chengshan Group fled a lawsuit against Cooper to dissolve their joint venture. Cooper's Roy Armes says the company can focus on Vice President, Chief Financial Offcer and building its business "unTreasurer Brad Hughes said the challenges encumbered" by a merger at CCT were driven by the merger agreement. agreement with Apollo. "With the agreement now terminated we are hopeful that our work to restore normal operations, including obtaining the information needed for Cooper to resume regular fnancial reporting as soon as possible, will be more effective." Hughes also said Cooper plans to pursue damages. "We believe Apollo has breached the merger agreement and given this, we will continue to pursue the appropriate legal steps to protect the interests of our company and our stockholders." Hughes said the companies will return to the Delaware Chancery Court for resolution of several issues, including whether Apollo used reasonable best efforts to reach an agreement with the United Steelworkers (USW) and whether Apollo should have signed a tentative agreement Cooper reached with the USW. Cooper does not believe it owes Apollo a $50 million termination fee, according to Hughes. "As to the $112.5 million reverse termination fee from Apollo, Cooper is pursuing this and other possible damages." Armes said he wanted to "set the record straight" on whether the litigation with Apollo and subsequent termination of the deal could have been avoided if a reduced price had been negotiated between Cooper and Apollo. "Cooper never received a proposal from Apollo to reduce the share price that included committed fnancing or that did not come with unreasonable risks for our company and our stockholders." Likewise, Apollo says it will seek damages. "While Cooper's lack of control over its largest subsidiary and inability to meet its legal and contractual fnancial reporting obligations has considerably complicated the situation, Apollo has made exhaustive efforts to fnd a sensible way forward over the last several months. "However, Cooper has been unwilling to work constructively to complete a transaction that would have created value for both companies and their shareholders. Cooper's actions leave Apollo no choice but to pursue legal remedies for Cooper's detrimental conduct." ■ MTD January 2014