Reuters: Boeing proposes up to 90% stake in new Embraer venture

From Reuters:

Boeing has presented a plan to Brazil’s government that would give it an 80 to 90 percent stake in a new venture encompassing Embraer SA’s commercial jet business, a Brazilian newspaper reported on Tuesday.

The plan Boeing presented to the government on Thursday would let it take over Embraer’s commercial operations via the creation of a new company, with defense operations remaining under the Brazilian planemaker’s control in order to meet government demands, Valor Economico reported, without citing a source.

Reuters previously reported on Friday that Boeing was seeking approval in Brasilia for a plan creating a new joint company excluding defense operations.

Valor reported that under the proposal Boeing would pay Embraer in cash when the commercial assets are transferred to the new company, with most of the proceeds then distributed to shareholders as dividends.

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