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The Markets
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Aerospace

Boeing launches US$19bn share issue to ease liquidity crunch

Boeing Co (NYSE:BA, ETR:BCO) has launched a near US$19 billion share sale to bolster its finances as it battles strikes, production problems and a reputational crisis.

Without new equity, the plane maker has said it faces its credit rating being reduced to junk status.

Some 90 million common shares and US$5 billion worth of depositary shares will be offered, said the company.

Kelly Ortberg, the engineer’s new chief executive, is facing a strike that has now lasted seven weeks and has seen a pay rise of 35% spread over four years rejected by unions.

Job losses of around 10% of the group’s employees are also planned while parts of the business are said to be under review including the Starliner space capsule program, Bloomberg News reported.

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