A123 Files for Bankruptcy; Johnson Controls Makes Deal to Purchase Battery Business (JCI)

By
A A A
Share |

A123 Systems ( AONE ) have filed for bankruptcy on Tuesday after receiving a grant from the governent. Johnson Controls, Inc. ( JCI ) has made a deal with the company to purchase their ion battery business

A123 Systems have declared that they have filed for bankruptcy on Tuesday after a financing deal with China's Wanxiang Group Corp. was declined.

The company had previously received a government grant of $249 million. AONE became a public company starting at $13.50 a share in September 2009, which shot up to its high of $22.44 a share in December 2009. Six months later, the stock price declined significantly and fell under $10 never recovering.

Auto Parts company, Johnson Controls have agreed to purchase the ion battery business from A123 for $125 million. In addition, Johnson controls have paid A123 $73 million in financing to help the company survive. While Johnson Controls will take ownership of their their automotive technology, A123 plans to continue to find strategic alternatives for its grid, commercial, government, and other operations.

Johnson Controls shares were up 12 cents, or 0.46% and A123 Systems shares were down 17 cents, or 74.54% Tuesday afternoon.

Johnson Controls, Inc. ( JCI ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Created by Dividend.com


This article appears in: Investing , Stocks

Referenced Stocks: AONE , JCI

Dividend.com

Dividend.com

More from Dividend.com:

Related Videos

Stocks

Referenced

80%

Most Active by Volume

36,586,989
  • $41.35 ▼ 2.29%
33,435,019
  • $42.20 ▼ 10.86%
31,919,424
  • $9.72 ▼ 8.30%
30,045,396
  • $26.49 ▼ 1.41%
29,014,873
  • $8.05 ▼ 8%
27,308,018
  • $14.66 ▼ 8.32%
23,704,242
  • $118.93 ▼ 0.06%
23,514,654
  • $17.04 ▼ 0.41%
As of 11/28/2014, 01:06 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com