Indian Firm to Buy Cooper Tire for $2.5 Billion
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If you actually read any articles on the issues it was much more than union problems. In fact, that was only a piece of it.
Cliff notes:
-A good number of people thought Apollo offered too much to buy Cooper
-Cooper tried to force the deal to go through, but failed
-A joint venture with a Chinese company and Cooper was causing problems with the deal
-Steelworkers union said their contract allowed them some sort of say and a new contract
http://dealbook.nytimes.com/2013/12/30/cooper-tire-abandons-merger/
Here's one excerpt from the article
Quote:
The issues with the steelworkers, however, were small compared with the problems Cooper suddenly faced with its joint venture in China.
Cooper Chengshan Tire, the joint venture, was originally 51 percent owned by Cooper, which teamed up with a local businessman. In 2010, Chengshan’s Chinese partner sold Cooper a significant portion of its stake for just $18 million, a figure that might have been worth much more based on the size of Apollo’s offer.
But after the deal with Apollo was announced, management and workers at Cooper’s joint venture stopped working with the company and cut production. This cut into Cooper’s revenue and made it impossible for the company to provide Apollo with the updated financial information it needed to secure financing for the deal.
The joint venture partner suggested the opposition was the result of concerns about Indian management of Chinese workers. In an advertisement it placed in The Wall Street Journal, it said, “Who can guarantee the success of integration between Chinese culture and Indian culture?”
But Chengshan’s opposition ultimately appeared been less about Indian ownership than about being compensated. Locking Cooper out of the factory was seen by many as a ploy to extract a higher price, and when Cooper tried to force arbitration of the dispute into courts in Hong Kong, it failed, and the partner was able to keep the case mired in local courts.
Here's a WSJ article on it:
http://online.wsj.com/news/articles/SB10001424052702304137304579290021473771410
Quote:
The United Steelworkers, which represents about 2,900 workers at Cooper plants in Ohio and Texas, said the takeover entitled the union to a new collective-bargaining agreement.
An arbitrator agreed in September, ruling that the merger couldn't close without a new labor contract.
That decision, Cooper later claimed, gave Apollo the opening it needed.
Both sides agreed the problems in China weren't grounds for Apollo to get out of the deal. But if Apollo could use the USW negotiations to delay the closing until the agreement expired Dec. 31, it could squeeze Cooper on price, Cooper has alleged.
Cliff notes:
-A good number of people thought Apollo offered too much to buy Cooper
-Cooper tried to force the deal to go through, but failed
-A joint venture with a Chinese company and Cooper was causing problems with the deal
-Steelworkers union said their contract allowed them some sort of say and a new contract
http://dealbook.nytimes.com/2013/12/30/cooper-tire-abandons-merger/
Here's one excerpt from the article
Quote:
The issues with the steelworkers, however, were small compared with the problems Cooper suddenly faced with its joint venture in China.
Cooper Chengshan Tire, the joint venture, was originally 51 percent owned by Cooper, which teamed up with a local businessman. In 2010, Chengshan’s Chinese partner sold Cooper a significant portion of its stake for just $18 million, a figure that might have been worth much more based on the size of Apollo’s offer.
But after the deal with Apollo was announced, management and workers at Cooper’s joint venture stopped working with the company and cut production. This cut into Cooper’s revenue and made it impossible for the company to provide Apollo with the updated financial information it needed to secure financing for the deal.
The joint venture partner suggested the opposition was the result of concerns about Indian management of Chinese workers. In an advertisement it placed in The Wall Street Journal, it said, “Who can guarantee the success of integration between Chinese culture and Indian culture?”
But Chengshan’s opposition ultimately appeared been less about Indian ownership than about being compensated. Locking Cooper out of the factory was seen by many as a ploy to extract a higher price, and when Cooper tried to force arbitration of the dispute into courts in Hong Kong, it failed, and the partner was able to keep the case mired in local courts.
Here's a WSJ article on it:
http://online.wsj.com/news/articles/SB10001424052702304137304579290021473771410
Quote:
The United Steelworkers, which represents about 2,900 workers at Cooper plants in Ohio and Texas, said the takeover entitled the union to a new collective-bargaining agreement.
An arbitrator agreed in September, ruling that the merger couldn't close without a new labor contract.
That decision, Cooper later claimed, gave Apollo the opening it needed.
Both sides agreed the problems in China weren't grounds for Apollo to get out of the deal. But if Apollo could use the USW negotiations to delay the closing until the agreement expired Dec. 31, it could squeeze Cooper on price, Cooper has alleged.
Originally Posted By: stephen9666
If you actually read any articles on the issues it was much more than union problems. In fact, that was only a piece of it.
Cliff notes:
-A good number of people thought Apollo offered too much to buy Cooper
-Cooper tried to force the deal to go through, but failed
-A joint venture with a Chinese company and Cooper was causing problems with the deal
-Steelworkers union said their contract allowed them some sort of say and a new contract
http://dealbook.nytimes.com/2013/12/30/cooper-tire-abandons-merger/
Here's one excerpt from the article
Quote:
The issues with the steelworkers, however, were small compared with the problems Cooper suddenly faced with its joint venture in China.
Cooper Chengshan Tire, the joint venture, was originally 51 percent owned by Cooper, which teamed up with a local businessman. In 2010, Chengshan’s Chinese partner sold Cooper a significant portion of its stake for just $18 million, a figure that might have been worth much more based on the size of Apollo’s offer.
But after the deal with Apollo was announced, management and workers at Cooper’s joint venture stopped working with the company and cut production. This cut into Cooper’s revenue and made it impossible for the company to provide Apollo with the updated financial information it needed to secure financing for the deal.
The joint venture partner suggested the opposition was the result of concerns about Indian management of Chinese workers. In an advertisement it placed in The Wall Street Journal, it said, “Who can guarantee the success of integration between Chinese culture and Indian culture?”
But Chengshan’s opposition ultimately appeared been less about Indian ownership than about being compensated. Locking Cooper out of the factory was seen by many as a ploy to extract a higher price, and when Cooper tried to force arbitration of the dispute into courts in Hong Kong, it failed, and the partner was able to keep the case mired in local courts.
Here's a WSJ article on it:
http://online.wsj.com/news/articles/SB10001424052702304137304579290021473771410
Quote:
The United Steelworkers, which represents about 2,900 workers at Cooper plants in Ohio and Texas, said the takeover entitled the union to a new collective-bargaining agreement.
An arbitrator agreed in September, ruling that the merger couldn't close without a new labor contract.
That decision, Cooper later claimed, gave Apollo the opening it needed.
Both sides agreed the problems in China weren't grounds for Apollo to get out of the deal. But if Apollo could use the USW negotiations to delay the closing until the agreement expired Dec. 31, it could squeeze Cooper on price, Cooper has alleged.
Not sure who the "you" that you're referring to is...
Yes, I read everything that I could find on the topic, and no, you didn't tell me anything that I already didn't know.
But thanks anyway.
If you actually read any articles on the issues it was much more than union problems. In fact, that was only a piece of it.
Cliff notes:
-A good number of people thought Apollo offered too much to buy Cooper
-Cooper tried to force the deal to go through, but failed
-A joint venture with a Chinese company and Cooper was causing problems with the deal
-Steelworkers union said their contract allowed them some sort of say and a new contract
http://dealbook.nytimes.com/2013/12/30/cooper-tire-abandons-merger/
Here's one excerpt from the article
Quote:
The issues with the steelworkers, however, were small compared with the problems Cooper suddenly faced with its joint venture in China.
Cooper Chengshan Tire, the joint venture, was originally 51 percent owned by Cooper, which teamed up with a local businessman. In 2010, Chengshan’s Chinese partner sold Cooper a significant portion of its stake for just $18 million, a figure that might have been worth much more based on the size of Apollo’s offer.
But after the deal with Apollo was announced, management and workers at Cooper’s joint venture stopped working with the company and cut production. This cut into Cooper’s revenue and made it impossible for the company to provide Apollo with the updated financial information it needed to secure financing for the deal.
The joint venture partner suggested the opposition was the result of concerns about Indian management of Chinese workers. In an advertisement it placed in The Wall Street Journal, it said, “Who can guarantee the success of integration between Chinese culture and Indian culture?”
But Chengshan’s opposition ultimately appeared been less about Indian ownership than about being compensated. Locking Cooper out of the factory was seen by many as a ploy to extract a higher price, and when Cooper tried to force arbitration of the dispute into courts in Hong Kong, it failed, and the partner was able to keep the case mired in local courts.
Here's a WSJ article on it:
http://online.wsj.com/news/articles/SB10001424052702304137304579290021473771410
Quote:
The United Steelworkers, which represents about 2,900 workers at Cooper plants in Ohio and Texas, said the takeover entitled the union to a new collective-bargaining agreement.
An arbitrator agreed in September, ruling that the merger couldn't close without a new labor contract.
That decision, Cooper later claimed, gave Apollo the opening it needed.
Both sides agreed the problems in China weren't grounds for Apollo to get out of the deal. But if Apollo could use the USW negotiations to delay the closing until the agreement expired Dec. 31, it could squeeze Cooper on price, Cooper has alleged.
Not sure who the "you" that you're referring to is...
Yes, I read everything that I could find on the topic, and no, you didn't tell me anything that I already didn't know.
But thanks anyway.
Strange, very strange. Have a feeling there was quite a bit going on we did not know.
Also betting Apollo changed their mind shortly after the offer. I was told that there was some angry people after that offer.
This might be a good thing for Cooper...they kinda need to reinvent themselves as a company....
Also betting Apollo changed their mind shortly after the offer. I was told that there was some angry people after that offer.
This might be a good thing for Cooper...they kinda need to reinvent themselves as a company....
If anything it shows that Cooper manglement is incredibly greedy and shortsighted. It confirms that the past issues with it's US based workers was NOT largely the blame of the workers, but clearly a pattern of MISmanglement.
The company should go private to stop the shortsighted business practices.
The company should go private to stop the shortsighted business practices.
Hi,
grampi - we say this sort of thing here in OZ too.....
Originally Posted By: grampi
Doesn't surprise me...even the making of pet foods has been outsourced to china...we don't make anything in this country anymore....and people wonder why the economy stinks!
We live in interesting times...........
grampi - we say this sort of thing here in OZ too.....
Originally Posted By: grampi
Doesn't surprise me...even the making of pet foods has been outsourced to china...we don't make anything in this country anymore....and people wonder why the economy stinks!
We live in interesting times...........
Originally Posted By: antiqueshell
If anything it shows that Cooper manglement is incredibly greedy and shortsighted. It confirms that the past issues with it's US based workers was NOT largely the blame of the workers, but clearly a pattern of MISmanglement.
The company should go private to stop the shortsighted business practices.
I agree with the private part...I think it would help them focus better on the core products...
If anything it shows that Cooper manglement is incredibly greedy and shortsighted. It confirms that the past issues with it's US based workers was NOT largely the blame of the workers, but clearly a pattern of MISmanglement.
The company should go private to stop the shortsighted business practices.
I agree with the private part...I think it would help them focus better on the core products...
After reading the history and recent turn of events, with the dissension/conflict or infighting, I'd be very leery of purchasing a Cooper Tire now. Just me.
It didn't help that they had an Indian firm come in and offer $35 a share, only to turn around later and say "Oh, did we *really* offer $35 a share?... I think we meant to offer several dollars a share less than that."
It also appears that Apollo didn't have a firm grasp as to what exactly that they were buying either. They were buying the issues with the Union labor, as well as the issues with the Chinese plant.
It also appears that Apollo didn't have a firm grasp as to what exactly that they were buying either. They were buying the issues with the Union labor, as well as the issues with the Chinese plant.
I might consider buying Cooper tires now.
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