11/6/13 – 4:47 A.M.
Testimony began in the stalled $2.5 billion buyout of Cooper Tire and Rubber by India’s Apollo Tyre yesterday. The Courier reports Delaware chancery court judge Sam Glasscock III ruled Tuesday morning that the court would not hear any arguments over an agreement announced Friday between Cooper and the United Steel Workers.
Roy Armes, the chairman and president of Cooper Tire was the first witness on the stand. Armes said he had no idea Chinese workers would oppose the buyout from Apollo Tyre. Armes added that the Chengshan Group, which owns 35% of the Cooper venture in China, was preparing to make its own bid for Cooper. Apollo attorneys questioned whether the Indian tire maker had been properly informed that a potential rival bid could come from a company that owns part of a Cooper facility.
Armes said after Apollo met with the union earlier this year, the Indian firm asked for a price reduction because Apollo believed a deal with the union would cost it between $75 and $125 million. Armes believed that estimate was too high.
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