Last month, a Wall Street Journal report that Boeing (NYSE:BA) had approached Embraer (NYSE:ERJ) to discuss a possible merger drove Embraer's stock up 22% in a single day. Talks are ongoing among the parties, but the Brazilian government owns a "golden share" in Embraer, and with it, can veto any deal. Thus, no merger can happen until Brazil has given its consent -- and by all accounts, while the Brazilians are open to the idea of Boeing making an investment in Embraer, they're not at all keen to allow Boeing to buy Embraer outright.
By: Rich Smith
