(Reuters) -Boeing Co is in talks to buy Spirit AeroSystems, the beleaguered supplier reeling from a string of quality lapses, the Wall Street Journal reported on Friday.
Shares of Spirit jumped 16.2% in morning trading, while those of Boeing fell 1%.
Spirit, which was spun off from the U.S. planemaker in 2005, has hired bankers to explore strategic options and has had preliminary discussions with Boeing, the Journal reported, citing people familiar with the matter.
Spirit is also exploring selling operations in Ireland that make parts for Airbus, according to the report. Spirit’s market cap stood at $3.3 billion as of Thursday’s close, according to LSEG data.
Boeing and Spirit declined to comment.
Boeing and Spirit, which builds the entire 737 fuselage, are under scrutiny from investors, regulators and lawmakers after a door plug detached from a 737 MAX 9 in flight.
The latest quality lapse has turned into a reputational crisis for Boeing, which postponed providing a financial forecast for 2024 when it reported quarterly results in January.
Spirit has, meanwhile, struggled with quality issues at its factories, pressuring deliveries and cash flows.
(Reporting by Abhijith Ganapavaram and Shivansh Tiwary in Bengaluru; Editing by Anil D’Silva)
Comments