MARKET UPDATE
| Apollo Tyres tanks on acquisition of US company for Rs 14,500 crore June 13, 2013 at 09:29 IST |
| Business Standard Economy Policy News Apollo Tyres has tanked 17% to Rs 76.35 in early morning deals on BSE after the company said it will acquire US-based Cooper Tire & Rubber Company in an all-cash transaction of around Rs 14,500 crore ($2.5 billion). A consortium of four banks — Morgan Stanley, Deutsche Bank, Goldman Sachs and Standard Chartered — will raise $ 2.5 billion of new debt for Apollo to fund the acquisition. Yaresh Kothari, auto analyst, Angel Broking, said Apollo Tyres’ debt-to-equity ratio would increase to 3.8 from the present 0.8 after the acquisition. The stock opened at Rs 86 and has seen heavy activity on the counter. A combined 3.02 million shares have already changed hands on the counter till against an average sub 2 million shares that were traded daily in past two weeks on BSE and NSE. |
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