SÃO PAULO, Brazil --- Brazil’s defense minister said the government was concerned that talks about Boeing Co.’s possible takeover of Embraer SA had gone ahead without its knowledge, and demanded explanations from the Brazilian aircraft maker.
Raul Jungmann reiterated Thursday that the Brazilian government, which has a golden share in Embraer, wouldn’t permit a change in control of the company. The golden share gives the government veto power over such a transaction.
“No country would agree to give up control of a company like this one,” the minister said at a press conference in Brasília, explaining that Embraer played a central role in Brazil’s military strategy as well as its manufacturing industry.
Embraer and Boeing confirmed last week that they discussed a plan for the U.S. company to buy the smaller Brazilian aircraft maker.
Brazilian President Michel Temer immediately cast doubts on the negotiations, saying that the government was against a takeover of Embraer, but would welcome investment in the company. (end of excerpt)
Click here for the full story, on the WSJ website.