Sources reveal that Boeing (BA, Financial) is contemplating the issuance of new shares to raise at least $10 billion to replenish its dwindling cash reserves, exacerbated by ongoing strikes. Insiders, who requested anonymity due to the confidential nature of the information, mentioned that the company is working with advisors to explore various options.
Assuming the strike issues are resolved, Boeing is unlikely to proceed with equity financing within the next month. A company spokesperson declined to comment on the matter. The sources added that no final decisions have been made regarding the timing and amount of the stock issuance, and Boeing may ultimately decide not to proceed with the action.
Analysts anticipate a cash outflow of $3.36 billion for Boeing in the third quarter, according to compiled data. JPMorgan estimates that the strike could cost the company approximately $1.5 billion per month.
