July 5, 2018 / 1:35 PM / a month ago

BUZZ-Brazil's Embraer: shares down as terms of Boeing JV disappoint

** Shares in Brazil planemaker Embraer SA down sharply at opening on Thurs after announcement that Boeing Co will take over commercial aircraft arm as part of new company to be controlled by U.S. firm

** Deal values Embraer’s commercial aircraft ops at $4.75 bln and Boeing’s 80 pct stake at $3.8 bln, the companies said in a filing, lower than expected by some analysts

** “Our initial take - lower than expected valuation for the Commercial Aviation segment but still an upside to Embraer’s current price,” analysts at BTG Pactual wrote in a note

** BTG adds that important unknowns still surround tax implications of deal

** Embraer’s Sao Paulo-listed shares down 6.7 pct, biggest intraday fall since July ‘16

** Brazil’s benchmark Bovespa index up 0.14 pct in morning trade

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