{"id":3876,"date":"2019-02-26T07:52:13","date_gmt":"2019-02-26T13:52:13","guid":{"rendered":"http:\/\/planesintheair.com\/?p=3876"},"modified":"2019-02-26T07:52:19","modified_gmt":"2019-02-26T13:52:19","slug":"embraer-says-key-vote-on-boeing-tie-up-may-proceed","status":"publish","type":"post","link":"https:\/\/planesintheair.com\/?p=3876","title":{"rendered":"Embraer Says Key Vote on Boeing Tie-up May Proceed"},"content":{"rendered":"\n

SAO\n PAULO (Reuters) – Brazilian planemaker Embraer said on Tuesday a key \nshareholder meeting to vote on the sale of 80 percent of its commercial \naviation business to Boeing Co could proceed as scheduled on Tuesday, \nafter it got an injunction overturned.<\/p>\n\n\n\n

A\n federal judge had suspended the meeting on Friday at the request of a \nunion representing some Embraer workers which had lobbied against the \ndeal, partly on concerns Boeing would slash jobs if the tie-up was \napproved.<\/p>\n\n\n\n

Shares in Embraer surged 3 percent in early Sao Paulo trading on news the meeting would take place.<\/p>\n\n\n\n

Last-minute\n legal twists are common in Brazil, and Embraer had already overturned \nseveral injunctions that temporarily blocked the deal.<\/p>\n\n\n\n

Under\n the proposed terms, Boeing will pay $4.2 billion to control Embraer’s \nmost profitable division, its commercial aviation business.<\/p>\n\n\n\n

The\n deal will provide a cash influx that the Brazilian planemaker has \ndefended as crucial to its survival as increased competition between \nBoeing and Airbus squeezes out smaller rivals.<\/p>\n\n\n\n

“The\n potential operation with Boeing will save Embraer,” lawyers for the \nBrazilian planemaker said in July in a court filing as it battled an \nearlier challenge to the deal.<\/p>\n\n\n\n

But\n critics say the arrangement will leave Embraer weaker and financially \ndependent on its two remaining divisions, executive jets and defense, \nboth of which have posted losses in recent quarters.<\/p>\n\n\n\n

Foreign shareholders, who own a tiny slice of the company, overwhelmingly voted to approve the deal.<\/p>\n\n\n\n

Brazil’s\n securities regulator late on Monday denied a separate request filed by \nminority shareholders to suspend the shareholder meeting.<\/p>\n\n\n\n

Embraer’s\n union has vowed to protest the meeting, which will be held at the \nplanemaker’s headquarters in the city of Sao Jose dos Campos. The \nunion’s plans prompted Embraer to seek legal restrictions of its own.<\/p>\n\n\n\n

A\n judge sided with Embraer last week, allowing Brazil’s military police \nto safeguard the planemaker’s premises while the meeting takes place.<\/p>\n\n\n\n

The\n deal has already been approved by Brazil’s government, which holds veto\n power over important business decisions at Embraer, which was a state \ncompany until its privatization in the 1990s.<\/p>\n\n\n\n

(Reporting by Marcelo Rochabrun in Sao Paulo; Additional reporting by Gram Slattery in Rio de Janeiro; Editing by Jason Neely, Keith Weir and Bernadette Baum)<\/p>\n\n\n\n

\"\"<\/figure>\n","protected":false},"excerpt":{"rendered":"

Brazilian planemaker Embraer said on Tuesday a key shareholder meeting to vote on the sale of 80 percent of its commercial aviation business to Boeing Co could proceed as scheduled on Tuesday, after it got an injunction overturned.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[89,799,2203,1397,868,1103],"tags":[160,41,687,988,2848,1563,1268,2847,168,1907,589,2846,2548,412,2816,689,1288,2815,2268,1471],"class_list":["post-3876","post","type-post","status-publish","format-standard","hentry","category-aviation-news","category-boeing-news","category-finance-news","category-stock-news","category-transportation-news","category-travel-news","tag-aviation","tag-boeing","tag-brazilian","tag-business","tag-campos","tag-commercial","tag-defense","tag-dos","tag-embraer","tag-executive","tag-jet","tag-jose","tag-meeting","tag-news","tag-paulo","tag-planemaker","tag-reuters","tag-sao","tag-shareholder","tag-vote"],"_links":{"self":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/3876","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3876"}],"version-history":[{"count":1,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/3876\/revisions"}],"predecessor-version":[{"id":3879,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/3876\/revisions\/3879"}],"wp:attachment":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3876"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3876"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3876"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}