Military
Boeing May Have Mitigated One Problem Just in Time to Face Another
Published:
Last Updated:
It’s been a busy night for Boeing Co. (NYSE: BA). After U.S. markets closed Thursday, the company announced a deal for up to 100 of its 737 MAX aircraft with Nigeria’s Green Africa Airways, and then said it had struck a deal with Saudi Arabian carrier Flyadeal for up to 50 more of the single-aisle passenger jets. If all 150 planes are delivered, the combined value of the two deals at list prices is $17.9 billion.
The deal with Green Africa Airways is a commitment to purchase 50 planes with an option for up to 50 more. Flyadeal has committed to ordering 30 planes with options for 20 more.
If the two carriers do indeed purchase all the committed aircraft, Boeing will have offset most of a threatened cancellation of Lion Air’s $22 billion order for 200 of the planes. The Indonesian carrier suffered a 737 MAX crash in early October that killed all 189 people on board. Lion Air’s CEO has been outspoken in his criticism of Boeing’s implication that the airline was at fault for the disaster.
In the game of whack-a-mole that Boeing and Embraer S.A. (NYSE: ERJ) are playing with Brazil’s unions and investors, a Brazilian judge has handed down a second temporary injunction to block the joint venture announced earlier this week between the two aircraft manufacturers. Two weeks ago a Brazilian court issued a temporary injunction against the proposed joint venture that was overturned by a higher court within days.
According to a Reuters report, the new injunction is based on a demand that Boeing extends a tender offer to all Embraer shareholders. An investor’s association claims that the company’s bylaws require a tender offer when an investor seeks a 35% or larger stake in the company and offers to pay a premium of 50% or more for the privilege.
In premarket trading Friday, Boeing’s stock traded up about 0.4% to $313.70, in a 52-week range of $293.01 to $394.28. Embraer was trading up about 0.8% to $21.15 a share, in a 52-week range of $17.99 to $28.55.
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
