Boeing Considering $10 Billion Stock Sale – Bloomberg News

Shares of Boeing Co experienced a slight decline in early U.S. trading on Tuesday following a report indicating that the aerospace company is considering raising at least $10 billion through new stock sales.

According to sources familiar with the matter, Boeing is consulting with advisors on potential strategies for this fundraising effort. However, it is unlikely that the company will proceed with the equity raise for at least another month. Boeing is assessing the financial consequences of a strike involving 33,000 workers in the U.S. Pacific Northwest.

No definitive decisions regarding the timing or amount of the potential stock sale have been made, and there remains a possibility that Boeing may choose not to move forward with the fundraising initiative.

If executed, this stock sale would mark the largest by a public company since a $12.3 billion sale by Saudi Aramco in June.

The workers have been on strike for three weeks and have rejected two pay proposals from Boeing, prolonging the labor dispute and adding further stress to the company’s finances and production capabilities during a period of increased scrutiny over its safety record. Reports indicate that Boeing’s credit rating is nearing junk status.

Boeing’s Chief Financial Officer has indicated that the ongoing work stoppage could impact the company’s supply chain as well.

Recently, Boeing proposed an enhanced deal to the striking workers, which included a 30% general pay increase over a four-year period and better retirement benefits. The company labeled this as its “best and final” offer. However, the International Association of Machinists and Aerospace Workers District 751, representing the strikers, dismissed the proposal, stating that it was presented without prior negotiation.

To help resolve the deadlock, a mediator has been engaged in the discussions.