Cash-strapped Boeing is looking to raise $19 billion in a stock offering to relieve its liquidity issues and blunt the effects of a prolonged strike by production workers. The company is offering 90 million common shares and $5 billion in depositary shares to make ends meet. It says it intends to use the money for “general corporate purposes,” which means keeping the lights on for those who are still working.
Last week the majority of members of the International Association of Machinists and Aerospace Workers rejected a 35% wage increase and upped the ante with a demand for a return to defined benefit pensions, which the union gave up for 401(k)s in exchange for keeping Boeing 777 production in Washington State. The strike has stopped deliveries and since figuratively handing over the keys is when Boeing gets mostly paid for each jet, it’s choked off a key source of income. The company reported a third-quarter loss of $6 billion last week.
