AKRON (Nov. 3, 2014) — The Delaware Chancery Court has ruled against Cooper Tire & Rubber Co. in Cooper's bid to recoup a $112 million breakup fee related to the failed $2.5 billion merger deal with India's Apollo Tyres Ltd.
In a statement Apollo Tyres said the “ruling vindicates our consistent stand that even as Apollo Tyres made exhaustive efforts to complete the deal, Cooper failed to comply with its contractual obligations because it was unable to control its largest subsidiary.
“This led it to hastily litigate and ultimately led to the failure of a transaction that would have benefitted Apollo and Cooper's shareholders.”
Delaware Chancery Court Judge Sam Glasscock III ruled late last week that Cooper had not satisfied the closing conditions of the deal and therefore the breakup fee terms were negated. The case has been under review since Jan. 27 when the court ruled it would proceed with a decision on the Apollo entities' motion for declaratory judgment.