AKRON (June 13, 2013) — The price of a share of Apollo Tyres Ltd.'s stock plunged 25 percent in trading yesterday after it announced its intention to buy Cooper Tire & Rubber Co.
The share price of Apollo's stock fell to $1.17 (68.55 rupees)—a 52-week low, according to Indian brokerages—in brisk trading on the New Delhi exchange.
A share of Cooper's stock, by contrast, shot up 41.1 percent in heavy trading June 12. Cooper's share price closed the day at $34.66, or just shy of the $35 price Apollo is offering. The volume traded was 39 million shares, or about 40 times the normal daily volume.
The share price actually opened at $34.50 after closing the day on June 11 at $24.56, according to Cooper's stock ticker.
The Findlay, Ohio-based tire maker earlier said Apollo's $35 offer represented a 40-percent premium over the average selling price over the previous 30 days. The highest closing price in the past year before yesterday was $28.09 on May 20.
By comparison, Goodyear's stock price closed yesterday at $14.93, up 2.2 percent from the June 11 closing, in moderately heavy trading.