Apollo Tyres to take control of Cooper Tire - report
Tire manufacturer Apollo Tyres is in the process of buying a controlling stake in Cooper Tire & Rubber Co , the Economic Times reported.
The value of the deal could be in the range of $600 million to $800 million, the newspaper said, citing sources. (http://r.reuters.com/cak33t)
Shares of Cooper Tire, which had a market value of about $1.2 billion as of Wednesday's close, jumped as much as 11 percent on the New York Stock Exchange on Thursday, bringing the gain so far this year to about 45 percent.
Apollo Tyres' shares closed 2 percent higher on the National Stock Exchange.
The acquisition of the world's 9th biggest tire maker by sales would give Apollo Tyres access to the market for replacement tires for cars and light and medium trucks, the Economic Times said.
Apollo Tyres could be raising close to $600 million of debt to fund the transaction, the business newspaper said. Standard Chartered Bank is advising Apollo Tyres, it said.
A spokesman for Apollo Tyres declined to comment, while officials at Cooper Tire could not be immediately reached.