Litigation may deflate Apollo Tyres

Shares of Apollo Tyres are likely to come under pressure as Cooper Tire & Rubber Co has filed a complaint in the Delaware Chancery Court to direct the Indian firm to close acquisition of the American company in a timely manner. A Reuters report quoting Cooper said Apollo Tyres was looking to delay settling issues with its workers, belonging to the United Steel Workers union, who have asked that new agreements be drawn up between them and Apollo post merger. Meanwhile Apollo Tyres,said it was disappointed by the legal action and was working to complete the deal as expeditiously as possible. Apollo Tyres in June entered into a definitive agreement through its subsidiary with Cooper Tire to acquire the latter in an all-cash transaction valued at about $2.5 billion.