- This offer amounts to a 22.4% increase over Spirit’s closing price on February 29, the day before news of the company’s buyout discussions with Boeing (NYSE: BA) broke, and a premium of about 6% over Spirit’s stock closing price of $33.07 on Monday.
- According to Bloomberg, Boeing changed their offer from an all-cash one. The specifics of the new offer are still being worked out, but it may contain some cash, and the transaction is anticipated to be revealed in the coming days.
- Spirit said that it is still “focused on giving our customers the best quality products.” A request for comment from Reuters was not immediately answered by Boeing.
- Following a mid-air blowout on a new 737 MAX in January, Boeing started negotiations earlier this year to purchase back the Wichita, Kansas-based supplier it spun off in 2005. The goal is to stabilize a critical portion of the supply chain for its best-selling aircraft.
- After accusing Spirit of delivering defective or unfinished components to its facilities, Boeing has said that it is repurchasing Spirit to ensure quality and safety in its operations.
- Nevertheless, Spirit’s work for Airbus caused a snag in the negotiations, as the European company threatened to thwart any agreement that involved Boeing producing components for its newest planes.
- According to Bloomberg, Spirit will have to sell off a few of its production facilities to Airbus as part of the agreement.
- As previously reported by Reuters, Spirit’s projects have been largely divided between work that Boeing will take back and work that Airbus will accept.
- Spirit spent $444 million in the first quarter and reported a net loss of $617 million, far more than experts had predicted.
Source:
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