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Boeing Terminates $4.2 Billion Deal to Buy Stake in Embraer Unit
Boeing Terminates $4.2 Billion Deal to Buy Stake in Embraer Unit
(about 5 hours later)
Boeing, which is contending with the economic fallout from the pandemic and the grounding of its 737 Max jets, said Saturday that it had terminated an agreement to buy 80 percent of Embraer’s commercial jet business for $4.2 billion.
Boeing, which is contending with the economic fallout from the pandemic and the grounding of its 737 Max jets, said Saturday that it had terminated an agreement to buy 80 percent of Embraer’s commercial jet business for $4.2 billion.
Walking away from the deal will help Boeing conserve cash at a time when it is facing a litany of problems. The spread of the coronavirus forced the aerospace giant to temporarily close factories, although it has reopened some of them. And a steep drop in travel has prompted airlines around the world to cancel orders.
Walking away from the deal will help Boeing conserve cash at a time when it is facing a litany of problems. The spread of the coronavirus forced the aerospace giant to temporarily close factories, although it has reopened some of them. And a steep drop in travel has prompted airlines around the world to cancel orders.
Boeing said it had decided to end two years of talks with Embraer, a Brazilian plane maker, after a Friday night deadline passed without Embraer meeting certain conditions, which Boeing would not specify.
Boeing said it had decided to end two years of talks with Embraer, a Brazilian plane maker, after a Friday night deadline passed without Embraer meeting certain conditions, which Boeing would not specify.
Embraer called Boeing’s claims “false” and said it would seek unspecified damages.
Embraer called Boeing’s claims “false” and said it would seek unspecified damages.
The initial agreement, struck two years ago, would have given Boeing access to Embraer’s line of smaller planes to compete with its chief rival, Airbus, for regional jet orders.
The initial agreement, struck two years ago, would have given Boeing access to Embraer’s line of smaller planes to compete with its chief rival, Airbus, for regional jet orders.
But the aviation business, along with Boeing’s own prospects, has sharply deteriorated since then. After two fatal crashes of the 737 Max, regulators around the world grounded the jet last year. And the coronavirus pandemic has ended most air travel globally, upending the finances of airlines and prompting them to cancel or defer airplane orders.
But the aviation business, along with Boeing’s own prospects, has sharply deteriorated since then. After two fatal crashes of the 737 Max, regulators around the world grounded the jet last year. And the coronavirus pandemic has ended most air travel globally, upending the finances of airlines and prompting them to cancel or defer airplane orders.
Embraer’s own finances have also weakened. Although the agreement did not allow Boeing to terminate it for financial reasons, the company said other terms of the master transaction agreement had not been met.
Embraer’s own finances have also weakened. Although the agreement did not allow Boeing to terminate it for financial reasons, the company said other terms of the master transaction agreement had not been met.
“We have reached a point where continued negotiation within the framework of the M.T.A. is not going to resolve the outstanding issues,” Marc Allen, the Boeing executive in charge of the Embraer partnership, said in a statement.
“We have reached a point where continued negotiation within the framework of the M.T.A. is not going to resolve the outstanding issues,” Marc Allen, the Boeing executive in charge of the Embraer partnership, said in a statement.
Updated June 22, 2020
A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico.
The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
Embraer had sought more time to reach a final agreement. The Brazilian company said in a statement that Boeing had “manufactured false claims as a pretext to seek to avoid its commitments to close the transaction.”
Embraer had sought more time to reach a final agreement. The Brazilian company said in a statement that Boeing had “manufactured false claims as a pretext to seek to avoid its commitments to close the transaction.”
“We believe Boeing has engaged in a systematic pattern of delay and repeated violations of the M.T.A. because of its unwillingness to complete the transaction in light of its own financial condition and 737 MAX and other business and reputational problems,” Embraer said.
“We believe Boeing has engaged in a systematic pattern of delay and repeated violations of the M.T.A. because of its unwillingness to complete the transaction in light of its own financial condition and 737 MAX and other business and reputational problems,” Embraer said.
Other corporate mergers and acquisitions are also collapsing as the coronavirus outbreak has crippled the economy. On Wednesday, a private equity firm, Sycamore Partners, that had agreed in February to buy a majority of Victoria’s Secret said it wanted to terminate the deal because of the clothing retailer’s response to the crisis.
Other corporate mergers and acquisitions are also collapsing as the coronavirus outbreak has crippled the economy. On Wednesday, a private equity firm, Sycamore Partners, that had agreed in February to buy a majority of Victoria’s Secret said it wanted to terminate the deal because of the clothing retailer’s response to the crisis.
Embraer said it would provide more information in a call with investors on Monday, the same day Boeing is scheduled to hold its annual shareholder meeting. Boeing will announce its first-quarter financial results and outlook on Wednesday.
Embraer said it would provide more information in a call with investors on Monday, the same day Boeing is scheduled to hold its annual shareholder meeting. Boeing will announce its first-quarter financial results and outlook on Wednesday.
