Positive sign that Che is starting production. A little concerned about the financial reporting part. I wonder why that is taking longer than starting production. You can never trust the Chinese when it comes to financial reporting.
Interesting answer from the Apollo CFO on what really happened on the Apollo-Cooper deal.
Q: What was the real story?
Sarkar: This is what we discovered subsequently and is now part of the court filings that Cooper was trying to sell itself to this guy (Zhe Hongzhi, Chairman of Chengshan Cooper Tires in China) even the day after they signed the agreement with us. On the 12th of June, they signed with us. On the 15th of June, this guy was in the US at their invitation to see if he would bid higher. He did bid higher. He bid $ 38 per share but Cooper believed his financing was not as committed as Apollo’s and chose to go ahead with Apollo. That’s really the underlining factor behind this whole thing.
I'm going to take an educated guess. I read the interview with the Apollo CFO in Forbes India. Basically he lays out the case for the merger, that the tire makers need to get bigger in order to compete globally. He also said that he trusts most of the Cooper team and laid the blame completely on Che. He also mentioned that Che offered $38 but with less solid financing. Cooper was upset with the interview, but it really wasn't that bad.
I have a feeling that there maybe talks between the three parties - Apollo, Cooper, and Che - to get another deal done. At the phone conference Roy stated that Apollo never offered a lower price with committed financing, there were still conditions. He implied that a lower offer would be OK if it was committed. I think the path to a deal is starting to form.