Cooper Tire & Rubber Co on Saturday said it has filed a complaint in a US court to push Indias Apollo Tyres to close its $2.5 billion acquisition of the American company in a timely manner.
Apollo,which is seeking to create the worlds seventh-largest tyre company through the takeover,said it was disappointed by the legal action and was working to complete the deal as expeditiously as possible.
We are disappointed that Cooper has taken this unusual step and question their motives. The litigation simply has no basis, Apollo said in an emailed statement.
Coopers move is the latest complication in the deal that has been plagued by opposition from some workers since its announcement.
Cooper filed a complaint in the Delaware Chancery Court,saying Apollo was delaying settling issues with some of its labour from the United Steel Workers (USW) union,who have asked that new agreements be drawn up between them and the Indian company before concluding the deal.
Apollo is aiming to gain a foothold in the two biggest markets China and the US through the pending acquisition. But the deal is being opposed by workers at Coopers joint venture in China,and has run into further trouble over demands made by the US labour union.
We have been working diligently to assist Cooper in resolving its outstanding issues with the United Steel Workers, Apollo said.