December 20, 2018 / 12:26 PM / a month ago

Investors association asks for tender offer in Boeing-Embraer deal

RIO DE JANEIRO, Dec 20 (Reuters) - Brazilian investors’ association Abradin has filed a motion with a São Paulo court questioning the legality of a tie-up between U.S. planemaker Boeing Co and Embraer SA.

The motion asks the court to determine whether Embraer shareholders should be eligible for a public tender offer. Abradin could bring legal action against the deal if a public tender is not launched.

“We understand that this is an illegal operation,” Abradin’s president, Aurelio Valporto, told Reuters.

Embraer’s bylaws ensure an offer to all shareholders with a 50 percent premium over market prices if any investor buys 35 percent or more of the company.

Embraer and Boeing finalized a deal this week in which Embraer will sell 80 percent of its commercial jet unit, netting $3 billion in proceeds.

Both companies did not immediately comment on the matter. (Reporting by Rodrigo Viga Gaier and Marta Nogueira Writing by Gram Slattery Editing by Frances Kerry)

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