SAO PAULO/BRASILIA ¨C Brazil¡¯s Embraer SA says it has begun an arbitration process against Boeing Co, after the U.S. aerospace giant abruptly canceled a $4.2 billion (?451 billion) deal over the weekend that had been years in the making.
The deal¡¯s collapse was not well-received by investors, who appeared to have hoped until the last minute that the takeover would not fall apart. Boeing shares fell to an eight-year low.
But Brazil¡¯s government, which used to own Embraer and is still the company¡¯s biggest military client, took a more upbeat tone. It views China as a potential new partner for the plane manufacturer, even though several senior Brazilian government figures have attacked the Chinese government recently.
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