Boeing offers to acquire Spirit Aero for $35 per share: BBG

Boeing (BA) has made an all-cash offer to acquire Spirit AeroSystems (SPR) for $35 per share, according to Bloomberg reports. Spirit originally spun off from Boeing in 2005.

The Morning Brief Hosts Seana Smith and Brad Smith examine the details of Boeing's proposed deal and the value the plane developer could find in acquiring the manufacturer.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Luke Carberry Mogan.

Video transcript

Boeing is reportedly offering to acquire Spirit error systems in a deal consisting of mostly stock, valuing the company at around $35 per share, according to Bloomberg.

The deal reportedly originally an all cash offer.

This is significant, especially as you continue to really evaluate what this would mean for Boeing trying to bring even more of a handle over its manufacturing operation and, of course, in Spirit AeroSystems.

They also have operations that run directly with Airbus as well, a company that we'll be talking about a little bit more in a moment here.

But Aero Airbus is trying to get its at least part of the spirit Aero Systems Manufacturing and Boeing is going to end up with the more outsized share and the kind of lions share of what Spirit AeroSystems is for their own manufacturing its, uh, aircraft going forward here.

But, uh, even as we're kind of looking at both of these businesses, Spirit AeroSystems stock has essentially been moving over the past several months over just this back and forth over what the price might be, what the deal might actually come down to at the end of the day, when you take a look at what the offer is and what exactly that means in relation to spirit.

Stock price Now $35 per share price represents a premium of about 6% to where it closed yesterday and Monday is closed, but 22% upside to it closing price on February 29th.

And we talk about that day because this is the day before Boeing's takeover talks.

It really started to become a public.

So we have seen a bit of a rise here and again.

Spirit error system is now moving lower by about 3.5% here on the heels of this news in terms of what Wall Street went, analysts are saying here, The early reaction to this steeple was out with a note to clients here today saying that as we await more details, But we do see the $35 per share mark as a reasonable outcome here for both parties.

So obviously, Brad, like you, said, you're acquiring Spirit Aerosystems.

It's going to give Boeing greater control over the manufacturing process here of its jetliner structures.

We know, obviously it has been under tremendous amount of pressure to implement some changes here to say the least, uh, to its manufacturing processes in order to eliminate some of the issues here that it has had here over the last several months.

But again here in taking a look at the reaction to this news $35 here per share price representing about a premium of 6% compared to where the stock closed, uh, Spirit Air Systems closed yesterday.