westinghouse terminates merger with cbd

From Renew Economy:

By Giles Parkinson on 21 July 2013

CBD Energy’s grand plan to use the Westinghouse brand to reinvent itself on the US Nasdaq stock exchange has come to nought after the Westinghouse Solar pulled the pin on the deal over the weekend.

The California-based company, a spin-off from the famous Westinghouse appliance business a decade ago, had agreed in February last year to Sydney-based CBD Energy buying an 85 per cent stake in the company.

But in a SEC filing on Friday, US time, Westinghouse Solar said the merger was to have been consummated a year ago, and it had called the end of the deal after repeated extensions and delays had caused it to lose money.

“The uncertainty has resulted in a disruption in the company’s supply relationships, leading to a significant decline in the company’s revenue and the implementation by the company of significant cost reductions including the layoff of employees,” it said in its statement.

It is the second major corporate manoeuvre to come unstuck for CBD Energy and its serial deal-maker CEO Gerry McGowan in the last two years. McGowan is the former head of Impulse Airlines.

The AusChina Energy joint venture created with Chinese energy giants Datang and Hianwei with much fanfare in 2011 fell through last year, although CBD enlisted the help of Banco Santander, and latterly the Clean Energy Finance Corp, to fund the proposed development of the Taralga wind farm in New South Wales.

Another proposed purchase of the Neighbourhood Energy electricity retailer also came to nought.

Full article: http://reneweconomy.com.au/2013/westinghouse-terminates-merger-with-australias-cbd-energy-80311