Shares of Boeing (NYSE: BA) fell out of bed Friday, dropping 6.5% by 9:40 a.m. ET after Reuters reported the company might be out of the running to sell Canada new fighter jets.
For more than a decade, Canada has been weighing the merits of buying F-35 stealth fighter jets from Lockheed Martin (NYSE: LMT) to replace the aging CF-18 jet fighters that currently make up the bulk of its fleet. But because the purchase of 65 F-35s might cost as much as $30 billion, Canada has been considering other options, including buying upgraded F/A-18 fighters from Boeing, or other models from defense contractors such as Airbus (OTC: EADSY).
But as Reuters now reports, after reviewing bids from the defense contractors, Canada has concluded that the F/A-18 does not, in fact, meet Canada's requirements, and Boeing is out of the running.
Source Fool.com