It has all the hallmarks of the kind of special situation that encourages any activist investor worth their salt to get out of bed in the morning. The potential of a merger between the under-pressure American-based tire companies Goodyear (NASDAQ: GT) and Cooper (NYSE: CTB) should have sharks circling to take a bite out of them, says The Edge.
A merger of both Goodyear and Cooper may be a big deal for investors who love the well-known brands with decent track records. The rationalization of production facilities by both entities will save $100m over the next three years. Moreover, affordable tire offerings by Cooper, along with high performance Goodyear tires, provide the right mix of product for customers.