Embraer's ability to invest in new aircraft development is likely to receive a big boost out of the anticipated overhaul of its shareholder structure. The Brazilian manufacturer's board late last week was expected to approve a share conversion that will also see the current concern being moved into a new entity of the same name. Market observers believe that Embraer's controlling shareholders plan to reduce their combined stake in the manufacturer to 49%. The board's decision would probably give Embraer easier access to capital through the stock market, while pension funds Previ and Sis-tel could expect cash gains needed to meet greater pension payments by selling part of their stakes.
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