Boeing, in need of cash, looks to raise up to $19 billion in stock offering

Boeing is looking to raise up to approximately $19 billion in a stock offering as the aerospace giant, which is dealing with a contentious strike, faces liquidity issues and tries to raise cash.

Boeing Co. said Monday that it will offer 90 million in common stock and $5 billion in depositary shares. The company’s stock closed at $155.01 on Friday,

The company said it plans to use the net proceeds for general corporate purposes, which may include repaying debt, additions to working capital, capital expenditures, and funding and investments in its subsidiaries.

Fitch Ratings said Monday that the offering supports debt repayment and increases financial flexibility, alleviating the risk of a downgrade. The agency said that it continues to evaluate Boeing’s ability to resolve its labor negotiations and regain operational momentum. It rates Boeing “BBB-,” the lowest investment-grade rating.

Last week, Boeing factory workers voted to reject the company’s latest contract offer and to continue a six-week strike.

The strike has deprived the company of much-needed cash that it gets from delivering new planes to airlines. On Wednesday, the company reported a third-quarter loss of more than $6 billion. Boeing hasn’t had a profitable year since 2018, and Wednesday’s numbers represented the second-worst quarter in the manufacturer’s history.

Apple launches iPhone into AI era

Apple is releasing a free software update that will inject its first dose of artificial intelligence into its iPhone 16 lineup as the trendsetting company tries to catch up with technology’s latest craze.

The upgrade to the iOS 18 operating system on Monday arrives more than a month after four iPhone 16 models equipped with the special computer chip needed to power the AI features went on sale at prices ranging from $800 to $1,200. Last year’s premium models — the iPhone 15 Pro and iPhone 15 Pro Max — also possess a processor that will enable the AI technology after the software update is installed.

Recent versions of Apple’s iPad and Mac computer also can be updated with the software. Countries outside the U.S. won’t be getting the AI software for their iPhones until next year at a date still to be determined. Apple spent the past five weeks testing the AI software among an audience of iPhone owners who signed up to help the company fine tune the technology.

Prison for pizza shop owner who threatened workers with deportation

The owner of two Boston-area pizza shops convicted of forced labor for using physical violence and threats of reprisal or deportation against employees living in the country illegally has been sentenced to more than eight years in prison.

Stavros Papantoniadis, 49, the owner of Stash’s Pizza, a Massachusetts pizzeria chain, was sentenced Friday in federal court to 102 months in prison, one year of supervised release and ordered to pay a $35,000 fine.

Papantoniadis forced or attempted to force six victims — five men and one woman — to work for him and comply with excessive workplace demands through violent physical abuse; threats of violence and serious harm; and repeated threats to report the victims to immigration authorities for deportation, according to prosecutors.

In June, a jury convicted Papantoniadis of three counts of forced labor and three counts of attempted forced labor. Papantoniadis has remained in custody since his arrest in March 2023.

Compiled from Associated Press reports.