Boeing Co (NYSE:BA, ETR:BCO) has moved to resolve its ongoing production issues with a US$4 billion bid for the parts supplier blamed for many of the problems.
The jet maker has offered to buy back Spirit AeroSystems in a mostly all-share deal that values the fuselage supplier at about $35 per share, Bloomberg News reported.
Boeing had flagged in February that buying back Spirit was one of the options it was considering to draw a line under the production issues that have dogged the aerospace giant in recent years.
Originally, Boeing offered cash but has switched to almost all equity with a small amount of cash as a sweetener said the report.
A price of US$35 would be around a 6% premium to yesterday’s close and 24% that in February when Boeing announced talks with Spirit were underway.
Reuters reported last week that Boeing was close to a deal after months of talks.
Spirit said in a statement that it remains "focused on providing the best quality products for our customers".
The component company was spun out of Boeing in 2005 to enable it to work for other aircraft makers, notably its former parent's main rival, Airbus.
Airbus had threatened to block any deal if it meant Boeing building parts for its newest models, but that hurdle has now been cleared said the reports.
A profit warning from Airbus on Monday cited Spirit as one of the reasons for lower production.