Company News

BUZZ-Brazil's Embraer: shares fall as rivals strike deal

** Shares in Embraer SA posted their biggest intraday tumble in more than 14 months on Tuesday on competition concerns, after larger rival Airbus SE agreed to take a majority stake in regional planemaker Bombardier Inc’s CSeries jetliner program

** The CSeries are a direct rival to Embraer’s family of regional jets. Embraer is the world’s largest player in that segment

** The stock, which touched a session low of 15.83 reais earlier in the day, traded 4.2 pct down at 16.27 reais at 1:50 p.m. local time (1550 GMT)

** According to analysts at Banco BTG Pactual, the agreement could give Bombardier a way out of a U.S. trade dispute with Boeing Co, which is “naturally negative” for Embraer - whose products are in direct competition with the CSeries

** Shares of Bombardier were up almost 20 percent on Tuesday, while shares in Airbus rose over 5 percent