Apollo Tyres gains on hopes of Cooper deal collapse

Reuters Market Eye - Apollo Tyres shares surge 7.9 percent as investors bet the company will drop its $2.5 billion deal to buy U.S.-based Cooper Tire & Rubber Co, traders say.

The merger agreement, signed in June, is valid up to December 31 after which Apollo can walk away from the deal.

"We believe that in the event of the Cooper Tire acquisition failing to materialise and no break-up fees is involved, this could be significantly positive for Apollo shareholders," Ambit Capital said in a research note.