Embraer
SAO PAULO (Reuters) - A Brazilian judge
overturned on Friday a decision that put the brakes on planemaker Embraer’s (EMBR3.SA) proposed sale of 80 percent of
its commercial aviation division to Boeing Co (BA.N), as the judicial back-and-forth
surrounding the deal continued.
According
to public news agency Agencia Estado, Federal Judge Therezinha Cazerta
suspended a decision which had suspended the sale earlier in the week. Her
decision came in response to a request from Brazil’s solicitor general, known
as the AGU, which argued that the injunction would hurt the economy and the
previous decision represented government overreach into the free market.
Legal
challenges to the deal, which would reshape the global passenger aviation
market, have been plentiful and are common in Brazilian dealmaking in general.
Boeing and
Embraer said on Monday they had finalized theterms of the agreement, valuing
the Brazilian planemaker’s commercial division at $5.26 billion. [nL1N1YM097]
The agreement needs approval from the Brazilian governmentbecause it holds a
so-called golden share in Embraer that gives it veto power over strategic
decisions and any change inits controlling interest. The planemaker formally
sought that approval on Monday and it is expected within 30 days.
On
Thursday, a judge issued the now overturned injunction blocking the proposed
deal in response to a class action filed by Embraer’s union in Sao Jose dos
Campos, where the planemaker is based. [nE6N1XN01Z]
Earlier in
December the same judge issued a similar injunction blocking the deal, only to
see the injunction swiftly overturned.
Reporting by Gram Slattery; Editing by
Meredith Mazzilli
Source: www.reuters.com
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