This case studied how the Brazilian jet manufacturer Embraer (Empresa Brasileira de Aeronáutica), dealt with the Brazilian Federal Government’s veto, in an ongoing acquisition process driven by the North american jet aircraft manufcturer Boeing Corporation. The global’s second largest company played a move in the global aircraft chess board against its main competitor. The european Airbus SE recently acquired the jets operation from the Canadian Bombardier, Embraer’s direct competitor. Nevertheless, the Brazilian Federal Government crossed Boeings’ path, , exercising the right of final word on this transaction, due to golden share veto. The golden share rule, however, is a vestige of the state’s role in the economy, in an era of deregulation and large scale privatizations. We addressed in this single case, the question of Governement interference on strategical transactions due to the golden share veto, as well as its implications to the economy, and finally brought managerial recommendations for practitioners, as well as future research recommendations.
Keywords: Aircraft Manufacturer, Embraer, Golden Share
