Boeing, Brazil's Embraer confirm talks over possible deal

AP News
Posted: Dec 21, 2017 3:24 PM

NEW YORK (AP) — Shares of the aircraft maker Embraer are soaring after the Brazilian company confirmed media reports that it's in talks with Boeing regarding a possible deal.

According to a story Thursday in The Wall Street Journal, Boeing Co. would be willing to pay a big premium to buy the company that has a market value of about $3.7 billion.

Boeing would get a bigger footprint in the regional jet industry. That is something that rival Airbus is already attempting to do, with plans to buy a majority stake of Canada's Bombardier Inc.

Embraer, however is highly prized by the Brazilian government, which would have to sign off on the deal. According to The Journal, it holds veto power over any sale.

Embraer and Chicago-based Boeing said Thursday there is no guarantee that a transaction will result from the talks, and they decline to make any further comments.

American depositary receipts of Embraer SA rose $4.26, or 21 percent, to $24.25 in afternoon trading. Boeing slipped $1.53 to $296.37.