July 12, 2018 / 7:34 PM / 4 months ago

Brazil development bank head: Embraer won't be worth much without Boeing

RIO DE JANEIRO, July 12 (Reuters) - Planemaker Embraer SA will be “not worth much” in a few years if the deal with Boeing Co does not come through, the chief executive of Brazil’s development bank told Reuters on Thursday.

Dyogo Oliveira, defending the deal publicly for the second time, said the agreement is “positive for shareholders because it will ensure Embraer’s survival and sustainability.”

The two aircraft manufacturers last week announced a $4.75 billion joint venture giving Boeing a controlling stake in the Embraer’s commercial aircraft arm.

The investment arm of development bank BNDESPar is one of the largest shareholders in Embraer, whose voting power is expected to be enhanced in the shareholders assembly that will decide on the deal by the company’s bylaws, as Reuters reported earlier on Thursday.

Oliveira declined to comment on a potential date for the shareholders assembly or a poison pill clause that requires payment of a 50 percent premium on the shares in the case of a takeover.

“Today we are shareholders of a company that will be not worth much in a few years without Boeing”, Oliveira said, citing Jet Blue Airways Corp’s decision to buy 60 narrow-body jets from Airbus SE to replace its existing fleet of Embraer E190 aircraft. (Writing by Tatiana Bautzer)

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