Activist spurs Goodyear to sell its off-the-road tire unit

Article Excerpt

Goodyear’s outlook is positive. This includes making significant investments in future tire technologies, including for EVs. Meantime, its involvement with activist Elliott Management draws attention to its prospects. GOODYEAR TIRE & RUBBER, $8.68, is a buy. The manufacturer (Nasdaq symbol GT; TSINetwork Rating: Extra Risk) (Shares outstanding: 284.7 million; Market cap: $2.5 billion; No dividends paid) has now agreed to sell its Off-the-Road (OTR) tire business to The Yokohama Rubber Company for $905 million. The transaction follows a previously announced strategic review of the OTR tire business in connection with the “Goodyear Forward” transformation plan. Goodyear continues to explore strategic alternatives (including the sale of assets like the OTR business) for some of its operating units; that should streamline its product portfolio, and please Elliott Management. The business units under review also include its chemicals operations and its Dunlop tire brand. Goodyear Tire & Rubber is a buy. buy. …