NEW YORK Johnson Controls
Inc. has filed an appeal against the sale order of A123 Systems
Inc. to Wanxiang America Corp. while reiterating its concerns
about "national security questions" arising from such a
JCI said it filed the appeal in
bankruptcy court against Wanxiangs approved purchase in a
bid to obtain the breakup fee and expense reimbursement under
its original stalking horse agreement with Waltham, Mass.-based
amm.com, Oct. 18).
"We appreciated the opportunity
to serve as stalking horse, which resulted in significant value
to the estate, creditors and employees," Johnson Controls Power
Solutions president Alex Molinaroli said.
JCI withdrew its bid for the
battery manufacturer after declining to match the
$256.6-million bid of Wanxiang America, a subsidiary of
Hangzhou, China-based Wanxiang Group (
amm.com, Dec. 10).
Meanwhile, the Milwaukee-based
company said it will "continue to monitor" the process of
A123s sale to Wanxiang, which must also be approved by
the Committee on Foreign Investment in the United States.
"Johnson Controls has
consistently maintained that national security questions tied
to the core technology used in all of A123s businesses
represent a risk to the sale, which cannot be dismissed until
resolved by the government review process," the company
"Should the sale of A123 Systems
to Wanxiang not be completed for any reason, Johnson Controls
remains open to considering future opportunities to acquire
relevant portions of A123s assets," Molinaroli added.