This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Acquisition Of Cooper Tire & Rubber Company By Apollo Tyres Ltd May Not Be In The Best Interests Of Cooper Shareholders

SAN DIEGO & FINDLAY, Ohio, June 14, 2013 /PRNewswire/ --  Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of Cooper Tire & Rubber Company (NYSE: CTB) by Apollo Tyres Ltd (NSE: ApolloTYRE). On June 12, 2013, the companies jointly announced the execution of a definitive merger agreement under which Apollo will acquire Cooper for $35.00 per share in cash. 

(Logo:  http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)

Is the Acquisition Best for Cooper and Its Shareholders?

Robbins Arroyo LLP's investigation focuses on whether the board of directors at Cooper is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the merger or whether they are seeking to benefit themselves. Notably, Cooper's current management team will continue to lead the company after the acquisition.

On May 9, 2013, Cooper released financial results for its fiscal 2013 first quarter, announcing record profits for the second consecutive quarter. Specifically, Cooper reported record first quarter operating profit of $97 million, an increase of $49 million compared to the same quarter 2012.  Further, net income attributable to Cooper was $0.87 per share, or $56 million, as compared to $0.34 per share, or $22 million, for the same period 2012.  In announcing the results, Roy Armes, Cooper's Chairman, Chief Executive Officer, and President, commented, "We carried the momentum of record financial results from 2012 into the first quarter of 2013…. Our long-term focus will remain on executing our strategic plan and continuing to deliver shareholder value across a wide range of conditions."

Given these facts, the firm is examining the board of directors' decision to sell Cooper now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.   

Stock quotes in this article: CTB 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs