Delaware Court Dismisses Cooper Tire's Appeal; Apollo Tyres Stock Rises

(RTTNews) - The Delaware Supreme court has dismissed Cooper Tire & Rubber Co.'s (CTB) appeal of a decision to block the company's bid to force the $2.5 billion takeover by Apollo Tyres Ltd., an India-based manufacturer of automobile tires, tubes and tire re-treading compound. Shares of Apollo Tyres climbed around 7 percent in the morning trade in India.

The companies announced the merger deal on June 12, but in October Cooper Tire sued Apollo Tyres, noting that Apollo failed to close the deal.

However, the court last month had ruled that Apollo Tyres fulfilled its obligations to resolve related disputes with a US labour union.

The Delaware Supreme Court, which had been slated to hear arguments on Thursday, said in a court filing that the appeal had been 'improvidently accepted, noting that it shouldn't have been taken on by the court in the first place.

Apollo can terminate the contract if Cooper does not get a ruling in its favor by December 31.

On BSE, Apollo shares are currently trading at 90 Indian rupees, up 5.25 rupees or 6.19 percent.