Breaking Finance News

Cooper Tire Takeover Sends Stock Soaring 41 Percent

Cooper Tire and Rubber Inc. (NYSE: CTB) soared 41 percent on Wednesday trading after it announced it was being acquired by Indian company, Apollo Tyres Ltd for $2.2 billion.

The Cooper Tire  takeover has been labeled as bitter sweet among industry watchers Wednesday. Cooper Tire is a storied American company with its headquarters located in Ohio. Arnold Palmer was once a spokesman for a company as American as General Motors.

The company will become the seventh largest tire maker and have strong exposure to four continents.

As part of the deal, Apollo Tyres committed to keeping all American factories open and no layoffs are expected.

Under the terms of the Cooper shareholders will receive $35 per share in cash which represents a 42 percent premium over Cooper’s closing price on Tuesday.

Cooper Tire and Rubber Inc. was up 41 percent on today’s news.

Disclosure: At the time of this writing, Jim Probasco had no position in the mentioned equities.

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