Posts: 1111
Joined: Fri Feb 20, 2004 5:09 am

EADS, Bnds & Others Selling Out Of ERJ

Thu Jan 25, 2007 4:21 am

EADS, Dassault SA, and local institutional investors, PREVI [pension fund of Banco do Brasil], BNDES and Sistel are selling out their stake in Embraer SA in a BRL 1,580 million secondary offering to be led by JP Morgan.


I think this is great news for Embraer, as it will enhance trading liquidity for the company's equity on both the BOVESPA and NYSE stock markets and further increase access to international capital markets.

In addition, Embraer will now be free to embark on strategic initiatives freely, with greater corporate governance independence.

Embraer has done so much to enhance its corporate governance and equity liquidity over the past year, including the homoginization of its ON and PN shares and, now, a massive secondary equity offering.