Analysts call Apollo’s purchase of Cooper ‘risky’

ERJ staff report (BC)

Akron, Ohio – Financial analysts who follow Apollo Tyres Ltd. are calling the Indian company’s $2.5 billion (€3.3 billion) bid to buy Cooper Tire & Rubber Co. “overambitious” and “risky,” reports Bruce Davis of Rubber & Plastics News, based on the amount of debt Apollo will incur.

Reflecting the uneasiness among Apollo shareholders, the Indian company’s stock dropped 25 percent in value on 13 June, the day the deal was announced.

“We see this as a risky acquisition as the management would have little…

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