Harvey: A minor correction: Ballard sold 25% of the company for C$25
per share in cash. The other $10 per share to get to $35 consists of
the supposed value of D-B's "fuel cell stack tecknology." I don't
believe that D-B knows a thing about PEM fuel cells other than what
Ballard has shown and taught them. So the other $10 is an imaginary
number designed to make the unobservant not realize that Ballard is
selling 25% of itself at a substantial discount.
One thing D-B does know a lot about is car engines, and the C$150,000,000
value that it places on its non-cash contribution to the engine company
does seem relatively reasonable. It is interesting that even though
Ballard is putting up nearly half the cash ($53,000,000 versus $57,000,000
contribution from D-B) it is getting only one third of the ownership.
As to opening doors, it will at D-B, but the deal will close them elsewhere.
I think you will see a slowing or end to the deals with Volvo, Nissan, etc.
Actually, all this will work in in favor of ERC. Not wanting to be dependent
on a competitor, I believe a lot of car companies will take a serious look at
other alternative technologies. ERC's nickel zinc batteries have all the
characteristics (low weight, high power, low cost, ability to handle many
shallow cycles) that make it ideal for hybrid gas/electric systems or pure
electrical vehicles. The Corning license did not cover electric vehicle applications,
other than standard batteries for starting cars. So I believe you will see some
interesting deals between ERC and car companies coming along. |
