Amerigon ( Nasdaq - ARGN ) -- Legal Entanglement Delays Merger

Amerigon (ARGN $14.50) suffered an adverse legal ruling concerning its W.E.T. acquisition.  The target company is based in Germany.  Amerigon purchased 76% of the stock in direct transactions earlier in 2011.  The remaining 24% is subject to highly regimented German securities laws.  Amerigon had hoped to follow a path that would have allowed it to force the remaining shareholders to sell, or at least give Amerigon operational control of the company.  A court ruling blocked that avenue and steered the company to a slower resolution.  Amerigon is likely to complete the deal in 2012.  But it won't be able to obtain operational control until the transaction is entirely finalized, probably late in the year.  That will prevent Amerigon from quickly integrating the two operations, which promised costs savings, R&D innovations, and cross selling opportunities.  We have reduced our 2012 earnings estimate by a dime, accordingly.  Investors are advised to wait for greater clarity before re-establishing positions.

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