Battery Maker Hurt While EV Makers Push Through
Unless you’ve been living under a rock, this past week has been brutal for battery makers. A123 Systems recalls many of its battery packs, including the ones with the problems found on the Fisker Karma. The story is sadder for Azure Dynamics, another pioneer in the market who has announced bankruptcy. While you would assume this would spell doom and gloom for car companies heavily invested in electric cars, the news shows otherwise.
A123 Systems . The news here is that A123 Systems announced a manufacturing problem caused in its Livonia facility, according to CEO David Vieau. The company problem stems from certain prismatic cells that were not welded together correctly. The defect is caused by one of the four automated welding machines. A123 Systems says it will start shipping replacement battery packs to five of its customers later this week and estimates the replacement will cost around $55 million. This sent stocks tumbling down, 14% to $1.21 after the announcement, since then, it has lost 29% of its original value. To add to the situation, a potential claim investigation from a law firm has been announced.
TBC Corporation Commences Tender Offer for All Outstanding Shares of Midas, Inc.
Today announced that TBC Corporation has commenced the previously announced tender offer for all of the outstanding shares of common stock of Midas at a price of $11.50 per share, net to the seller in cash without interest. The tender offer is being conducted by TBC through its wholly owned subsidiary Gearshift Merger Corp.On March 13, 2012, TBC and Midas announced that they had entered into a definitive merger agreement pursuant to which the tender offer would be made. Pursuant to the merger agreement, after completion of the tender offer and the satisfaction or waiver of certain conditions, Midas will merge with Gearshift Merger Corp., and all outstanding shares of Midas’ common stock (other than shares held by TBC Corporation, Gearshift Merger Corp., or Midas, and shares held by Midas’ stockholders who are entitled to and have properly exercised appraisal rights under Delaware law) will be automatically cancelled and converted into the right to receive cash equal to the $11.50 offer price per share.
