Boeing Shares Fall on Tanker Report

By: AP
By: AP

WASHINGTON (AP) _ Shares of Boeing fall nearly 2 percent on reports that the company may not bid in the next round for the Pentagon's refueling tanker contract.

Chicago-based Boeing's shares fell $1.24 to $66.62 in late morning trading.

Aviation Week reported Monday that Boeing is ``strongly considering'' not submitting a bid for the Air Force tanker after the Pentagon issued new guidelines last week for the plane. The report cited unnamed sources familiar with Boeing's internal strategy.

Boeing would not comment on the report.

Boeing lost the first round of bidding for the $35 billion contract to rival Northrop earlier this year. But the GAO later ruled that the Air Force had committed several errors in awarding the contract, so the Pentagon decided to reopen the bidding.

Kansas political officials and business leaders said not awarding the contract to Boeing could cost the state thousands of jobs.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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