WILMINGTON, Del.—Apollo Tyres Ltd. is "pleased" and Cooper Tire & Rubber Co. "disappointed" with a Delaware Court of Chancery ruling that Apollo did not breach the terms of its merger agreement with Cooper.
Both parties issued statements Nov. 8 responding to the ruling by Judge Sam Glasscock III, vice chancellor of the Delaware Court of Chancery, in relation to the complaint filed by Cooper Tire.
"We are pleased that the Delaware Court has found that Apollo is not in breach of its merger agreement with Cooper Tire," Apollo said. "Furthermore, the court found that Apollo has used 'reasonable best efforts' to negotiate with the (United Steelworkers) and that, contrary to Cooper's claims, 'nothing in Apollo's conduct indicates buyer's remorse.'
"Apollo continues to believe in the merits of the combination and is committed to finding a sensible way forward."
In its statement, Cooper said it was disappointed with the decision that Apollo did not breach its "obligation to expeditiously reach an agreement" with the United Steelworkers per the terms of the merger agreement.
"Cooper is assessing its options with respect to this decision and awaits the court's ruling on other open matters in this case."
The judge's decision came after three days of testimony by Apollo and Cooper.
The case was filed Oct. 4 by Cooper, which sued in the Delaware Court to compel Apollo to "expeditiously close the pending" $2.5 billion merger of the companies.
Cooper shares fell sharply after the judge's ruling was made public. The shares fell 11.5 percent to $23.82 on the New York Stock Exchange on Friday.
Apollo had agreed to buy Cooper for $35 per share, which valued the proposed transaction at $2.5 billion.
More than 6.3 million shares changed hands on Friday, about three times the average volume.