July 9, 2018 / 3:18 PM / a month ago

Embraer shareholder files complaint against Boeing deal: paper

BRASILIA (Reuters) - A shareholder of planemaker Embraer SA (EMBR3.SA) filed a complaint with Brazil’s securities regulator against a planned takeover of its commercial aircraft arm by Boeing Co (BA.N), newspaper Valor Econômico reported on Monday.

FILE PHOTO: The logo of Brazilian planemaker Embraer SA is seen at the company's headquarters in Sao Jose dos Campos, Brazil February 28, 2018. REUTERS/Roosevelt Cassio/File photo

Renato Chaves filed the complaint with regulator CVM late on Friday, arguing that the transaction would effectively grant control of Embraer to Boeing, disrespecting its statute, Valor reported.

“It is a disguised acquisition of a controlling stake,” Valor quoted Chaves as saying.

Embraer’s statute forbids any investor to own 35 percent or more of its shares directly or indirectly.

Chaves is a former director for pension fund Previ, which manages pensions for employees of state-controlled lender Banco do Brasil SA (BBAS3.SA). Valor did not specify the size of the Chaves’ stake in Embraer, but said he acknowledged that the stake was very small.

A representative for CVM could not immediately respond to a request for comment. A representative for Chaves could not be reached for comment.

Complaints are typically uploaded to CVM’s website once assessed by the regulator’s technical body. The complaint reported by Valor had not been uploaded.

Boeing and Embraer agreed last week to set up a $4.75 billion joint venture encompassing Embraer’s airliner business, helping the American company face up to Canada’s Bombardier Inc (BBDb.TO).

Reporting by Bruno Federowski; Editing by Susan Thomas

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