Shareholder mounts challenge against Embraer-Boeing deal

Renato Chaves, an Embraer shareholder has filed a complaint with Brazil’s securities regulator, CVM, claiming that the joint venture with Boeing is contrary to Embraer’s statute that forbids any investor to own 35% or more of its shares directly or indirectly, reports newspaper Valor Econômico. Chaves told the newspaper that the deal was “a disguised acquisition of a controlling stake”. Under the terms of the deal, Boeing will take an 80% stake in a joint venture containing Embraer’s regional commercial aircraft manufacturing and services business, with Embraer retaining 20% and an option to sell it to Boeing. The deal is