A Cooper Tire & Rubber Co. (CTB:US) investor sued to block the company’s $2.5 billion takeover by Apollo Tyres Ltd. (APTY), saying the offer of $35 a share is too low.
Company directors have an obligation to get the best possible price, the Booth Family Trust said in a filing made public today in Delaware Chancery Court in Wilmington.
“The proposed transaction is the result of an unfair process,” and “was negotiated and entered into in bad faith,” the trust said in the complaint.
Cooper Tire doesn’t comment on litigation, Anne L. Roman, a company spokeswoman, said in an e-mail.
The company, based in Findlay, Ohio, said June 12 it would be bought by Gurgaon, India-based Apollo to expand business around the world.
Cooper Tire fell 1.4 percent to $30.55 in New York trading at 11:15 a.m.
The case is Booth Family Trust v. Cooper Tire & Rubber Co., CA8668, Delaware Chancery Court (Wilmington).
To contact the reporter on this story: Phil Milford in Wilmington, Delaware, at firstname.lastname@example.org
To contact the editor responsible for this story: Michael Hytha at email@example.com