Cooper Tire Drops Plan to Sell Itself

Cooper Tire & Rubber Co. has terminated a plan announced six months ago to sell itself to India's Apollo Tyres Ltd. for $2.5 billion.

The Findlay, Ohio-based company says it has been notified by Apollo that financing for the deal is "no longer available." Cooper believes Apollo has defaulted on the merger.

The U.S. tiremaker appealed to the Delaware Supreme Court in November in a bid to force the deal after Apollo balked. The Indian company had demanded a 26% discount on its original offer, citing unexpected costs related to labor issues at a U.S. factory.

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

Apollo also claimed Cooper misrepresented its control of a 65%-owned venture in Shandong, China, after workers there stopped making Apollo-branded tires and blocked Cooper managers from entering the facility.