Spirit AeroSystems Soars Amidst Acquisition Speculations
Spirit AeroSystems (NYSE:SPR) experienced a surge of 6.6% in after-hours trading following reports indicating imminent discussions with Boeing (NYSE:BA) regarding a possible buyout.
The news of the impending deal comes on the heels of Spirit (SPR) making significant headway in separate negotiations with Airbus (OTCPK:EADSF), as reported by Reuters. Sources familiar with the matter indicated that the deal’s exact timeline remains ambiguous, with possibilities of fruition within days or weeks.
Signs of Progress in Negotiations
According to reports, Airbus (OTCPK:EADSF) has been seeing “good progress” in its talks with Spirit (SPR). Insiders suggest that a deal involving Spirit’s assets could materialize before Airbus’s mid-year earnings presentation next month.
Boeing (BA) has expressed keen interest in acquiring Spirit (SPR) as part of an overarching strategy to enhance product safety standards. Given that Spirit (SPR) functions as a critical supplier for Airbus (OTCPK:EADSF), Boeing’s arch-rival, the transaction complexity is evident. Boeing initially spun off Spirit (SPR) as an independent entity back in 2005.
Expectations and Challenges Ahead
Boeing (BA) remains optimistic about the potential acquisition. The company’s Chief Financial Officer, Brian West, recently conveyed his belief that a deal with Spirit (SPR) could be finalized in the second quarter.
Commenting on the timeline, West acknowledged the deal’s magnitude and intricacies, emphasizing the need for meticulous planning. “In terms of the timing, I still believe that we could get something done in the second quarter, but it’s large and it’s complex, and we’re not going to rush to get a deal done,” West remarked during the Wolfe Research Global Transportation & Industrials conference.