Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
New Embraer Capital Structure  
User currently offlinePdpsol From United States of America, joined Feb 2004, 1116 posts, RR: 5
Posted (8 years 8 months 1 day 23 hours ago) and read 2066 times:

Guys,

Huge news for Embraer and corporate governance practices in Brazil!!

Embraer is converting all its preference shares [PN] for 1 share/1 vote common shares [ON] and listing itself on the electronic Novo Mercado in Sao Paulo. PN's currently listed on the New York Stock Exchange [NYSE] under the trading ticker, "ERJ", will be converted to ON's, giving all shareholders identical political rights. The Brazilian government will retain its "golden share" in the company, giving it veto rights over any strategic transaction involving a change in corporate control.

This move has HUGE implications for corporate governance in Brazil, as it creates incentives for other corporations to follow suit and increase their trading liquidity and transparency. Embraer will now have much greater trading liquidity in its shares and have access to larger pools of investment capital.

Embraer's investor relations department will release its presentation detailing the move this evening. You can read the Reuters article describing today's announcement:

http://yahoo.reuters.com/financeQuot...06-01-19_23-36-41_n19295742_newsml

Bombardier should follow suit and drop its ridiculous A/B-share SV/MV capital structure that gives the Beaudoin and Bombardier families control over corporate governance. BBD's shares have been a disaster for investors.

1 replies: All unread, jump to last
 
User currently offlineIncitatus From Brazil, joined Feb 2005, 4014 posts, RR: 13
Reply 1, posted (8 years 8 months 1 day 14 hours ago) and read 2005 times:

Bombardier has a real problem. It is not updating its current products nor developing new ones. Its shot at the 110-135 seat market is bound to be overshadowed by expectation that Boeing and Airbus will launch new narrow bodies. Modifying their capital structure, though still positive, is unlikely to bring their airliner business back from the brink.


Stop pop up ads
Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
The New Embraer 195 In FlyBe Colours UK Debut posted Fri Sep 1 2006 22:18:44 by EGTESkyGod
Virgin Blue's New Embraer And 777 Fleet? posted Tue Aug 22 2006 00:06:12 by Aussie_
Embraer And New Embraer Merge..become Embraer posted Tue Apr 4 2006 19:06:58 by ODwyerPW
New Embraer Order Monday? posted Sun Apr 17 2005 10:04:36 by Lightsaber
Macedonian Airlines With New Embraer E170 Aircraft posted Wed Feb 9 2005 23:43:32 by Travel
DEN Getting New Embraer 170 Service posted Mon Jan 10 2005 06:43:22 by United4EverDEN
United PS Service Vs New DL Fare Structure posted Thu Jan 6 2005 21:05:36 by PA110
New Embraer Family Photo posted Wed Jan 5 2005 16:11:20 by EMBPR
Northwest Announces New Executive Team Structure posted Tue Oct 12 2004 15:53:54 by InnocuousFox
New Beijing Capital AIrport English Website posted Sat May 15 2004 02:29:43 by Planenutz