Apollo Tyres shares gain nearly 8% on bourses
Mumbai: Shares of Apollo Tyres on Tuesday soared nearly 8 percent amid hopes it will get a better deal to acquire US-based Cooper Tire & Rubber Co.
Apollo Tyres' scrip ended at Rs 100.90, up 7.97 percent from its previous close on the BSE. In intra-day trade, the stock rose by 8.93 percent to Rs 101.80.
At the NSE, the scrip settled 7.75 percent higher at Rs 100.75.
"The stock rose on assumption that the company will walk away from the Cooper deal which will be big positive for it. The stock may rise to Rs 120 in next two months," said Kishor Ostwal, CMD, CNI Research.
Apollo Tyres had on December 17 said Delaware Supreme Court has ruled in its favour in its ongoing spat with US-based Cooper Tire over their proposed USD 2.5-billion merger agreement.
On November 12, pushing for an early completion of their merger deal, Cooper Tire & Rubber Co had filed with the Delaware Supreme Court an appeal against the partial ruling on November 8, 2013 by Delaware Chancery Court.
In October, Cooper filed a complaint in Delaware Court of Chancery to push for completion of their merger and stated that the Indian firm was seeking to delay an agreement with USW, which represents Cooper employees at facilities in Findlay, Ohio, and Texarkana, Arkansas.
In June, Apollo had announced it will acquire Cooper Tire & Rubber Co in an all-cash transaction valued at around USD 2.5 billion (nearly Rs 14,500 crore) and the merged entity was billed to become the seventh largest tyre maker in the world.