Goodyear sells Dunlop

Article Excerpt

GOODYEAR TIRE & RUBBER, $9.34, is a buy. The manufacturer (Nasdaq symbol GT; TSINetwork Rating: Extra Risk) (Shares outstanding: 284.7 million; Market cap: $2.6 billion; No dividends paid) now plans to sell its Dunlop brand to Japan’s Sumitomo Rubber Industries for about $701 million. The sale will include Dunlop trademarks and intangible assets in Europe, North America, and Southeast Asia including Australia (Oceania). Meanwhile, the company will license back the Dunlop trademarks in Europe for truck tires and retain its rights to the Dunlop trademarks for its motorcycle tires in Europe and Oceania. Longer term, Goodyear’s outlook is positive. This includes the company making significant investments in future tire technologies for electric vehicles. Goodyear Tire & Rubber is a buy. buy…