This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-42448361
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Embraer shares take off on Boeing talks | Embraer shares take off on Boeing talks |
(35 minutes later) | |
Shares in Brazilian plane-maker Embraer soared more than 20% on Thursday, after the company said it had held talks with Boeing about a possible combination. | Shares in Brazilian plane-maker Embraer soared more than 20% on Thursday, after the company said it had held talks with Boeing about a possible combination. |
A deal with the US aerospace giant would join two of the world's biggest plane-makers. | A deal with the US aerospace giant would join two of the world's biggest plane-makers. |
Any deal would require permission from the Brazilian government, which is a stakeholder in Embraer. | Any deal would require permission from the Brazilian government, which is a stakeholder in Embraer. |
News of the talks comes a few months after rivals Airbus and Bombardier announced an alliance. | News of the talks comes a few months after rivals Airbus and Bombardier announced an alliance. |
Europe's Airbus said it would take a majority stake in Bombardier's CSeries jet project, a line of narrow-body planes that the firms said would drive growth in coming years. | Europe's Airbus said it would take a majority stake in Bombardier's CSeries jet project, a line of narrow-body planes that the firms said would drive growth in coming years. |
That deal prompted questions from analysts about whether Boeing, which has focused on larger planes, would pursue its own joint venture or partnership to compete. | That deal prompted questions from analysts about whether Boeing, which has focused on larger planes, would pursue its own joint venture or partnership to compete. |
In October Boeing said it was reviewing its options and that a deal was one possible use for surplus cash. | In October Boeing said it was reviewing its options and that a deal was one possible use for surplus cash. |
Like Bombardier, Embraer is known for its smaller commercial jets. | Like Bombardier, Embraer is known for its smaller commercial jets. |
It claims it is the leading manufacturer of commercial jets of up to 150 seats. | It claims it is the leading manufacturer of commercial jets of up to 150 seats. |
Its stock increased by more than 20% on Thursday, after the Wall Street Journal reported it had held talks with Boeing. The two companies later confirmed the discussions. | Its stock increased by more than 20% on Thursday, after the Wall Street Journal reported it had held talks with Boeing. The two companies later confirmed the discussions. |
Embraer employs about 18,000 people globally. It was formerly state-run and the government continues to hold a "golden share", which gives it veto powers over certain changes, including change of control. | |
Brazilian President Michael Temer has said he is open to a deal but opposes selling a majority stake, the newspaper Folha de S. Paulo reported. | Brazilian President Michael Temer has said he is open to a deal but opposes selling a majority stake, the newspaper Folha de S. Paulo reported. |
Bombardier's CSeries is the subject of a bitter trade dispute that has strained relations between the US and Canada and the UK. | Bombardier's CSeries is the subject of a bitter trade dispute that has strained relations between the US and Canada and the UK. |
The US is weighing possible trade duties of almost 300% on the jets, after Boeing said the Canadian company had received unfair subsidies that allowed below cost sales. | The US is weighing possible trade duties of almost 300% on the jets, after Boeing said the Canadian company had received unfair subsidies that allowed below cost sales. |
Previous version
1
Next version