Apollo Wants Price Cut on Cooper Tire Bid

Apollo Tyres Ltd. wants a discount on the $2.5 billion it has offered to pay for Cooper Tire & Rubber Co.

The Indian company points to unexpected costs related to labor issues at a U.S. factory and claims Cooper misrepresented its control of its 65%-owned tiremaking venture in China.

The sale has struggled with hurdles since it was announced in June. In China, workers at Cooper's factory in Shandong stopped making Apollo-branded tires and have blocked Cooper managers from entering the facility.

Last month an arbitrator barred Cooper from including two U.S. tire plants in the sale until the United Steel Workers union that represents the hourly workers there reaches agreement with Apollo on labor issues.

Apollo claims that Cooper has agreed that a price cut is warranted. Cooper denies any such statement and insists that disputes associated with the sale were prompted by Apollo's offer and are among the risks the Indian company assumed in making its offer.