EMBRAER: Stock Rises 5% On News Of Joint-venture With Boeing

(RTTNews) - The shares of the Brazilian aircraft maker Embraer rose more than 5% amid a report that the company accepted a new partnership model proposition by Boeing.

"The Brazilian and the American companies will create a third company, which will be in charge of the commercial operation of the aircraft manufacturer," reported the O Globo newspaper.

According to the report, the segment will be developed by both companies, but the military division, which acted as the liaison between them, will be excluded, remaining under the exclusive command of the Brazilian government. The newspaper released the information quoting the Defense Minister Raul Jungmann.

Earlier, Embraer stated that there was no offer to carry out business, only talks, and discussions.

"Embraer clarifies that it does not have at this moment elements to express itself on this topic since there is no definition about the structure of a potential business combination and the values that it could involve," the company said.