A123 Systems fka AONEQ

[stokjockey]

Nottrunner This was posted earlier. States sale price between 250m and 260m for Wanx's part. HAS NOT been verified though.


DJ UPDATE: Wanxiang Wins Bankruptcy Auction for A123 Systems - Source


(Adds purchase price, auction background starting in the second paragraph.)
By Patrick Fitzgerald


Chinese-owned auto-parts Wanxiang America Corp. won the bidding for A123 Systems Inc., the government-backed battery maker that has yet to turn a profit, at a bankruptcy auction that ended early Saturday according to a source involved in the sale.
Wanxiang's winning bid, which the source estimated at between $250 million and $260 million, topped a combined offer from Milwaukee-based auto-parts manufacturer Johnson Controls Inc. (JCI) and electronics maker NEC Corp. (NIPNF, 6701.TO) of Japan. The German electronics giant Siemens AG (SI, SIE.XE) also submitted a qualified bid at the auction, which kicked off Thursday at the Chicago office of Latham & Watkins, the law firm representing A123 in its Chapter 11 case.
A spokesman for A123 Systems declined to comment. A spokeswoman for Johnson Controls couldn't immediately comment.
A123, which was awarded nearly $250 million in grants from the Department of Energy in 2009 to build a factory in Michigan, filed for Chapter 11 bankruptcy in October with a plan to sell its automotive-business assets, including the plant, to Johnson Controls.
But Wanxiang, a unit of China's Wanxiang Group, stepped forward to purchase the lithium-ion-battery maker despite having been left at the altar earlier this year when a $465 million deal collapsed.
While A123's bankruptcy has been a black eye for the Obama administration's efforts to foster a domestic market for electric vehicles, the entire battery industry in the U.S. is struggling as demand for electric vehicles hasn't lived up to expectations so far. The cars that are being built still are using Japanese and Korean suppliers that have more manufacturing expertise and bigger scale.
In recent weeks a number of critics have warned of the risk that some of A123's taxpayer-funded technology could wind up in the hands of a Chinese purchaser.
At least two dozen members of Congress have written to the Committee on Foreign Investment in the United States warning that a sale to Wanxiang requires careful scrutiny.
Any sale to Wanxiang requires approval from the CFIUS, a government body led by Treasury Secretary Timothy Geithner, which reviews deals that could result in the control of a U.S. business by a foreign person or company.
A123--which in addition to its automotive-battery business has a consumer arm and grid-energy storage division--has a number of contracts to provide high-power batteries and other services to the U.S. military.
Wanxiang has tried to stem the criticism that helped derail its earlier deal to buy A123 Systems. The Chinese manufacturer's most-recent offer carves out A123's government business, and the company has said it intends to keep A123's Michigan operations in business. A123's government business was purchased by a Chicago area firm, according to the source.
The Chinese manufacturer initially offered about $131 million for A123's assets, according to a person familiar with the proposal. Johnson Controls had initially offered $125 million for A123's assets.
U.S. Bankruptcy Judge Kevin Carey has scheduled a sale hearing for the afternoon of Dec. 11 in Wilmington, Del.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection. Go to http://dbr.dowjones.com)
-Mike Ramsey contributed to this story.
Write to Patrick Fitzgerald at [e-mail]. Follow him on Twitter @WSJBankruptcy

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(END) Dow Jones Newswires
December 08, 2012 14:34 ET (19:34 GMT)
Copyright (c) 2012 Dow Jones & Company, Inc.- - 02 34 PM EST 12-08-12

Source: DJ Broad Tape