Apollo Tyres Bid

An Indian-American man has been sentenced to 20 months in prison for a $1 million insider trading scheme involving the failed Apollo Tyres bid to takeover Cooper Tire, prosecutors said on Wednesday.

While some bankers said Apollo's bid for Cooper was risky due to the larger size of the target, the outcome will add to skepticism about the ability of Indian family-run firms to execute large cross-border deals despite their need to search for growth abroad.

Apollo, which would become the world's seventh-biggest tire maker after the merger, wants to pay less than the $35 per share agreed in June because of demands by unions at Cooper plants and disruptions at Cooper's venture in China.

The Delaware Supreme Court dismissed Cooper's appeal against an earlier ruling that Apollo was meeting its obligations to reach new contract terms with unions at Cooper plants in Ohio and Texas.

After the deal was announced, Chengshan Group Co Ltd has attempted to kill its venture partner's deal with Apollo Tyres Ltd by locking out Cooper management and halting production of Cooper-branded tires, Roy Armes, Cooper's CEO, testified on Tuesday.

Apollo Tyres Ltd said its lenders were unlikely to approve its bid for US-based Cooper Tire & Rubber Co unless the $2.5 billion price tag was cut to take account of unresolved labour disputes.

Funding for Apollo Tyres' $2.5 billion bid for US-based Cooper Tire & Rubber Co is in jeopardy unless the deal price is cut to reflect the risk of higher costs stemming from labour issues, sources with direct knowledge of the matter said.

Foreign banks are fuelling India's recent burst of overseas takeover bids, offering cheap U.S. dollar loans to corporates hungry to expand beyond their home state.

An Indian-American man has been sentenced to 20 months in prison for a $1 million insider trading scheme involving the failed Apollo Tyres bid to takeover Cooper Tire, prosecutors said on Wednesday.

While some bankers said Apollo's bid for Cooper was risky due to the larger size of the target, the outcome will add to skepticism about the ability of Indian family-run firms to execute large cross-border deals despite their need to search for growth abroad.

Apollo, which would become the world's seventh-biggest tire maker after the merger, wants to pay less than the $35 per share agreed in June because of demands by unions at Cooper plants and disruptions at Cooper's venture in China.

The Delaware Supreme Court dismissed Cooper's appeal against an earlier ruling that Apollo was meeting its obligations to reach new contract terms with unions at Cooper plants in Ohio and Texas.

After the deal was announced, Chengshan Group Co Ltd has attempted to kill its venture partner's deal with Apollo Tyres Ltd by locking out Cooper management and halting production of Cooper-branded tires, Roy Armes, Cooper's CEO, testified on Tuesday.

Apollo Tyres Ltd said its lenders were unlikely to approve its bid for US-based Cooper Tire & Rubber Co unless the $2.5 billion price tag was cut to take account of unresolved labour disputes.

Funding for Apollo Tyres' $2.5 billion bid for US-based Cooper Tire & Rubber Co is in jeopardy unless the deal price is cut to reflect the risk of higher costs stemming from labour issues, sources with direct knowledge of the matter said.

Foreign banks are fuelling India's recent burst of overseas takeover bids, offering cheap U.S. dollar loans to corporates hungry to expand beyond their home state.