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Wanxiang Group intends to outbid Johnson Controls (JCI) for A213's (AONE) automotive-business...

Wanxiang Group intends to outbid Johnson Controls (JCI) for A213's (AONE) automotive-business assets and replace the U.S. company as the "stalking horse" bidder. The Chinese company announced its intention at a court hearing yesterday following A123's filing for Chapter 11. At the hearing, A123 won approval to borrow up to $15.5M in interim financing from Johnson Controls.
Comments (14)
  • So who gets the technology that the US government paid $250mil for? Does this go back to China with Wanxiang Group if they get the bid?
    19 Oct 2012, 07:38 AM Reply Like
  • Johnson control should up the bid tp keep A123 as US company, the battery market is gettig ready to come up, volume will increase aroud third quarter of 2013. A123 went to mass production a bid too early, lithium price was still high, beside market was't sure which chemistry is the safest until 2011.
    I do think a123 should concentrate on safety issue more careful, eventhouht the LiFePO4 is safe chemistry, but there are lots of lithium handling procedure to keep the pressure and lithium temperature down for safety reason.
    19 Oct 2012, 07:59 AM Reply Like
  • I dont belive Johnson control are in a position to even make the offer they already have on the table. Johnson control is living on borrowed money.

     

    The best thing for the business and the tax payers in the US, would be to continue with the China deal. I dont know what is holding them back. Nobody else ahve the capacity to benefit from their technology.
    19 Oct 2012, 08:32 AM Reply Like
  • Johnson Controls is the largest battery manufacturer in the world and knows how to manufacture which A123 obviously does not. Since much of A123's technology was paid for by US taxpayers and merits remaining American. Secondly it is unlikely the US government will approve any sale that takes still more US technology out of the country. A final comment, it is obvious that ebusdk knows nothing about JC which as a matter of interest has paid its shareholders uninterrupted dividends since 1887!!!
    19 Oct 2012, 05:10 PM Reply Like
  • I know enough to understand why their stocks arent rising these days. Johnson Controls recived $299 million stimulus grants in August 2009 for advanced batteries and electric vehicles, and still havent been able to use that money to further the development of their technology OR capacity.

     

    HISTORY holds zero value when it comes to investments. It's what the company can/will do today and tomorrow that counts - not what they did last year or 20 years ago
    20 Oct 2012, 09:44 AM Reply Like
  • Ener1 receives grants and is in bankruptcy
    A123 receives $249mil in grants and is in bankruptcy
    JCI receives grants and is living on borrowed time and which apparently posted 14 consecutive losing quarters, and has $376 million in debt versus $459.8 million in assets. Johnson Controls has also received DOE money. Its biggest grant totaled $299 million and was to be used for its own lithium-ion battery manufacturing program. Johnson has drawn down about $123 million of that grant.
    I wonder if Panasonic ever received government grants?

     

    I know Wanxiang Group never received any grants and according to China is doing just fine. According to one site, Wanxiang Group Corporation is diversified as well as financially solid. With 40,000 employees and US$4.2 billion in annual revenue, Wanxiang is fast becoming one of the major players in U.S.-China trade. In 2008, Wanxiang ranked 112th in the Top 500 Chinese Enterprises by the National Bureau of Statistics and was first in the automotive parts industry of China.
    21 Oct 2012, 11:37 AM Reply Like
  • Johnson Controls shareholder since 1963.
    19 Oct 2012, 05:10 PM Reply Like
  • I agree with ebusdk. China deal is the best. China has markets in Asia and the Middle East, thus, AONE selling will increase. Some people were saying China will steal our secrets. What a silly joke! WANGXIANG doesn't have to chip in $574 M to know the battery secrets. They can buy one battery and analyze it and get the secret. LOL. Another concern was about secret contracts with the Military, and at the same time, the same person talks about $20 M contract with the military. So, where are AONE'S SECRETS? And then, there is this big fuss about the government grants, quarter a Billion or so. Big deal. The government invested in space shuttle which burned and are parked somewhere. It's the way to go. Some projects pull it off and others need help. All this big fuss, in my opinion, comes from oil tycoons. Figure it out.
    20 Oct 2012, 03:15 AM Reply Like
  • I'm a 1000 share holder HELP
    20 Oct 2012, 03:25 AM Reply Like
  • JCI should be considered the preferred acquirer as they are US company and the US govt has paid for the technology. Shareholders and creditors should also be given appropriate consideration in the final deal.
    20 Oct 2012, 03:27 AM Reply Like
  • I am a longtime JCI stockholder and a strong proponent of the company for its successful history of strategic organic and external growth. The synergies from this deal are very good for both the company and the US govt goal to promote clean tachnology in this country.
    20 Oct 2012, 03:27 AM Reply Like
  • I believe JCI should be the preferred acquirer of A123 as they are a proven player tn the lithium-ion technology market, and a US company with a strong record in manufacturing , technological and financial performance. The synergies from this deal would be beneficial to both the company and the US govt since it advances the opportunities for incremental growth and clean energy.
    20 Oct 2012, 03:29 AM Reply Like
  • I think whomever will pay the most should be the winner. If JCI thinks it can do better than WG then they need to up the bid.
    22 Oct 2012, 08:05 AM Reply Like
  • It all boils down to the value of the equipment and inventory which is $x. $x-20% is good, $x-50% is better. A good sale is a discounted sale, buying at face value is not a good sale.
    29 Oct 2012, 10:26 AM Reply Like
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