Boeing (NYSE:BA) is set to tumble sharply on Monday, a move that will likely keep the Dow Jones Industrial Average lower on the day.
The stock's sharp move down is on pace to cost the 30-stock Dow nearly 250 points. Boeing has by far the biggest influence on the Dow given the index is price weighted. In other words, a higher share price will have a greater impact on the Dow.
Boeing closed at $422.54 per share on Friday, but dropped sharply on Monday after an Ethiopian Airlines flight crashed on Sunday, killing all 157 people on board.
The plane used on the flight was a 737 MAX 8 jet, one of Boeing's top-selling airplanes. The crash raised concern over the model's safety as it comes less than five months after another deadly crash involving the 737 MAX 8. Several countries, including China and Indonesia, grounded all flights involving the aircraft.
Late last week, the aircraft maker received notice of an unsolicited "mini-tender" offer by Peer & Peri LLC to purchase up to 10,000 shares of Boeing's common stock. Peer & Peri's offer price of $335.00 per share is approximately 22% lower than the $426.87 closing price of Boeing shares on February 25, the date of the commencement of the offer.
Boeing recommends against shareholders tendering shares in response to the offer, as the offer price was significantly below the market price of Boeing's stock as of the commencement of the offer, and is also significantly below Friday's closing price.
Shares stumbled $48.67, or 11.4%, Monday morning, to $374.20
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