Apollo Tyres amongst big losers

Apollo Tyres has been a big loser on the markets for the past few days and today too, it is down 3% at Rs.64.60, with an intra day low at Rs.61. Its 52-week low is at Rs.54.60.

The stock is down in the red as the market is disappointed that the shareholders of Cooper Tire approved the pending merger with a wholly-owned subsidiary of Apollo Tyres with more than 74% of Cooper's outstanding common shares voted in favor of the transaction. When finalised, the pending merger will result in a strategic business combination that creates the seventh-largest tire company in the world. The market is disappointed because this means that the large acquisition might impact the Indian company's balance sheet. The company is acquiring Cooper in  an all-cash transaction valued at approximately $2.5 billion.