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Friday, February 14, 2014

Goodyear moves to dissolve Sumitomo alliance, (NASDAQ: GT)

Goodyear Tire & Rubber Co has moved to end its global alliance with Sumitomo Rubber Industries Ltd, citing the Japanese tire maker's "anticompetitive conduct." Goodyear said on Thursday that it began arbitration proceedings last month to end the alliance, as well as seeking damages and other relief. Goodyear did not provide details on what actions by Sumitomo led to Goodyear's decision."We have learned that (Sumitomo Rubber Industries) has engaged in anticompetitive conduct in violation of applicable antitrust laws," Goodyear Chief Financial Officer Laura Thompson said during a Thursday conference call with analysts. "We concluded that warrants the dissolution of this global alliance."The company said in its annual 10-K filing with the U.S. Securities and Exchange Commission that it was difficult to predict the timing or outcome of the proceedings.Goodyear owns 75 percent and Sumitomo the rest of the ventures that make and sell tires in both North America and Europe. In Japan, Sumitomo owns 75 percent and Goodyear the rest of the venture there.

The Goodyear Tire & Rubber Company is a manufacturer of tires. Shares of GT fell by 0.33% or $-0.09/share to $26.85. In the past year, the shares have traded as low as $11.83 and as high as $27.27. On average, 3807320 shares of GT exchange hands on a given day and today's volume is recorded at 2141580.