Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, July 5, 2024

Article Excerpt

BOEING CO., $184.83, New York symbol BA, is still a hold. The company has agreed to acquire Spirit AeroSystems Holdings Inc. (New York symbol SPR), which builds the fuselages for the Boeing 737 Max jets. Boeing spun off Spirit as a separate firm in 2005. However, due to quality problems at this company, which caused a fuselage panel to come loose on one of Boeing’s 737 Max-9 planes in January 2024, Boeing now feels it needs to re-acquire Spirit to assert more control over this key supplier. Depending on Boeing’s share price just prior to the closing of the transactions, Spirit shareholders will receive between 0.18 and 0.25 of a Boeing share for each share they hold. In all, the deal is worth $4.7 billion, or $8.3 billion if you factor in Spirit’s debt. To put those figures in context, Boeing’s market cap (the total value of all outstanding shares) is $113.5 billion. As part of the deal, Spirit will sell its operations that make…