- Wealth PMS (50L+)
The Cooper Apollo Deal is finally over. Cooper has called it off, because it was told that financing for the deal will no longer be available. Fat chance it would, since they couldn’t even give financials of Q3 because the China unit revolted. That and the serious upping of salaries by the US union derailed the deal, which went through two court hearings where Cooper blamed Apollo for dragging its feet. Both judges said Apollo didn’t.
A quick note here to record the end of what has been a profitable story for me, despite the drama. (Apollo’s stock has risen over 60% since the initial announcements, and I made 50% in the investment I made).
Apollo might go up even further, but I’m not participating. My deal was that 96 is where it would reach. Beyond that is a function of momentum and while I would usually stay in, this time was an exception because I had no rationale to remain in the trade.
The Cooper Tire stock is down 3% in pre-market trade, and Apollo will open tomorrow after the news. While I think this deal falling through was already known earlier, the stock could easily see a move in either direction. Will this be a case though of “Buy the Rumour, Sell the News”? Tomorrow will tell.