Cooper Tire & Rubber (CTB) Sinks as Apollo Tyres Deal Put on Hold

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Shares of Cooper Tire & Rubber (NYSE: CTB) are down 4.8 percent in pre-open trading on reports Apollo Tyres has "put on hold" its plans to acquire the company.

Analysts at KeyBanc note, "The acquisition was subject to the success of raising funds through an equity offering, of which the Company received an unfavorable response given investor concerns over the deal and the Company's current capital structure. We have previously stated that a deal with Apollo would be surprising as the Company carries a highly leveraged balance sheet relative to CTB (leverage ratio 2.3x vs. CTB at 0.5x) and a need to issue additional debt and equity above current levels to obtain sufficient funds for a controlling stake."

The firm has a Hold rating on CTB.

For an analyst ratings summary and ratings history on Cooper Tire & Rubber click here. For more ratings news on Cooper Tire & Rubber click here.

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