Cooper Tire & Rubber Company (NYSE:CTB) Investor Files Lawsuit Against Acquisition

If you purchased shares of Cooper Tire & Rubber Company (NYSE:CTB) prior to June 12, 2013 , and currently hold any of those NYSE:CTB shares, you have certain options and you should contact the Shareholders Foundation, Inc.

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Company Name(s): 
Cooper Tire & Rubber
Case Name: 
Cooper Tire & Rubber Deal Case 06/21/2013
Case Status: 
Lawsuit Filed
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Mergers and Acquisition
Date Filed: 

June 25, 2013 (Shareholders Foundation) - An investor, who currently holds NYSE:CTB shares, filed a lawsuit in effort to halt the proposed takeover of Cooper Tire & Rubber Company by Apollo Tyres Ltd for $35.00 per NYSE:CTB share.

The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:CTB stockholders arising out of the attempt to sell the Cooper Tire & Rubber Company at an unfair price via an unfair process to Apollo Tyres Ltd.

On June 12, 2013, Apollo Tyres Ltd (NSE: ApolloTYRE) and Cooper Tire & Rubber Company (NYSE: CTB) announced the execution of a merger agreement under which a wholly-owned subsidiary of Apollo will acquire Cooper in an all-cash transaction valued at approximately $2.5 billion. Under the terms of the agreement Cooper Tire & Rubber Company stockholders will receive $35.00 per share in cash.

However, the plaintiff claims that the $35-offer is too low and undervalues the company. Indeed, Cooper Tire & Rubber Company’s financial performance improved lately. For instance, it reported that its annual Total Revenue rose from over $3.36 billion in 2010 to over $4.2 billion in 2012 and its respective Net Income increased from $140.45 million to $220.37 million. In addition, shares of Cooper Tire & Rubber Company (NYSE:CTB) grew from $3.44 per share in March 2009 to $28.09 per share in March 2013.

Furthermore, the plaintiff alleges that executives pursued their own interests at the expense of the company's shareholders and agreed to unfair terms with Apollo Tyres Ltd to lock into the agreement.

The plaintiff seeks to stop the proposed takeover under the current conditions.