Saab stock soars 30% on Brazil deal

  @AlannaPetroff December 19, 2013: 8:54 AM ET
saab gripen

The Brazilian government announced Wednesday that it would buy 36 Gripen fighter jets from Saab.


Shares in Saab soared by just over 30% Thursday after the Swedish company announced a $4.5 billion deal to supply the Brazilian government with new fighter jets.

The deal came as a surprise to investors who had been expecting Boeing (BA, Fortune 500) to win the lucrative contract.

Boeing shares slipped 0.3% Wednesday, under-performing U.S. markets which posted big gains after the Federal Reserve announced plans to trim its economic stimulus program.

Local media have speculated that Boeing lost out because Brazil was angered by reports that the U.S. government spied on President Dilma Rousseff.

Brazilian officials sidestepped questions about how the spying scandal may have affected the decision.

Speaking at a news conference late Wednesday, Defense Minister Celso Amorim said Saab was chosen for three main reasons: cost, performance and the ease of completing technology transfers.

Related: Pentagon to cut jobs and contracts by $1 billion

The competition for the contract had dragged on for roughly a decade, with France's Dassault (DASTF) also in the running.

The deal will see Saab deliver 36 new Gripen aircraft to Brazil's air force by 2023.

The Brazilian air force said the Swedish fighter jets will replace older Dassault-made aircraft.

Countries already using the Gripen include Sweden, Hungary, Czech Republic, South Africa and Thailand.

-- CNN's Shasta Darlington contributed to this report. To top of page

Join the Conversation
Sponsored by
Index Last Change % Change
Dow 16,408.54 -16.31 -0.10%
Nasdaq 4,095.52 9.29 0.23%
S&P 500 1,864.85 2.54 0.14%
Treasuries 2.72 0.08 3.19%
Data as of 11:40am ET
Company Price Change % Change
Bank of America Corp... 16.15 0.00 0.00%
Facebook Inc 58.94 0.00 0.00%
General Electric Co 26.56 0.00 0.00%
Cisco Systems Inc 23.19 -0.02 -0.09%
Micron Technology In... 23.91 0.00 0.00%
Data as of Apr 17
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.32%4.26%
15 yr fixed3.36%3.27%
5/1 ARM3.37%3.27%
30 yr refi4.31%4.24%
15 yr refi3.34%3.25%
View rates in your area
Find personalized rates:
Rate data provided
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.