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Indian Company May Seek Control of Cooper Tire
India's Apollo Tyres Ltd. is buying a controlling stake in Cooper Tire & Rubber Co., according to the New Delhi-based Economic Times.
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India's Apollo Tyres Ltd. is buying a controlling stake in Cooper Tire & Rubber Co., according to the New Delhi-based Economic Times.
The newspaper cites unidentified sources who say the acquisition may cost $600 million-$800 million. Reuters puts the total at the low end of that range.
Shares in the Findlay, Ohio-based company jumped 6% to $19.78 in after-hours trading on Thursday, thus valuing Cooper Tires' equity at $1.2 billion. Apollo's market capitalization is about $840 million.
News reports say the Indian company has hired Standard Chartered Bank to help it to raise $600 million to finance the acquisition by selling stock and debt.
Analysts say Apollo would benefit from access to the American tire market and Cooper's specialty: the replacement tire business. India now accounts for about two-thirds of Apollo's revenue. The company aims to become one of the world's 10 largest tiremakers by 2016.
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