Goodyear and Cooper Agree to Roll Forward as a Combined Company

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Goodyear (GT) - Get Report on Monday said it has agreed to buy Cooper Tire (CTB) - Get Report in a cash-and-stock deal valued at $2.8 billion, a roughly 24% premium over Cooper's Friday closing share price. 

Under terms of the deal, Cooper shareholders will receive $41.75 a share in cash and a fixed exchange ratio of 0.907 shares of Goodyear common stock per Cooper share for a total equity value of approximately $2.8 billion.

Based on Goodyear's closing stock price Friday, the implied cash-and-stock consideration to be received by Cooper shareholders is $54.36 a share, representing a 24% premium to Cooper's closing stock price, the companies said.

On closing, Goodyear shareholders will own about 84% of the combined company, while Cooper shareholders will own approximately 16%. Goodyear said it plans to fund the cash portion of the transaction through an existing credit line facility. 

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