By Ricardo Brito and Tim Hepher
BRASILIA/PARIS (Reuters) - Boeing Co <BA.N> sought to calm Brazilian concern about a potential tie-up with Embraer SA <EMBR3.SA> after President Michel Temer and other officials warned they would veto any full takeover bid for the regional jet maker.
While Temer said he would welcome an injection of foreign capital into Embraer, his warning was the latest reminder that the company, which also makes some military planes and was one of the more successful products of Brazilian industrial policy, remains a focus of national pride.
Boeing said talks with Embraer on what the companies have called a "potential combination" were ongoing and insisted that it fully respected the need to safeguard the company's defences and other state links.
"As we noted, discussions are ongoing, but we have always had deep respect for the role of the Government of Brazil, as well as their important defences and security concerns," Boeing spokesman Phil Musser said.
Earlier, Temer told a news conference he would study any decision the companies take on an alliance, emphasizing that his government could use its 'golden share' in the company to block foreign control of the formerly state-run company, fully privatized in 2006.
"When a decision arrives, I will examine it," Temer said. He added: "The purpose of the golden share is for the government to take such a decision."
Defence Minister Raul Jungmann said the government welcomed a commercial alliance with Boeing.
"We are in favour of this and other partnerships," Jungmann said at the same news conference with Temer.
But he also said foreign control of the company was out of the question, citing Embraer's central role in Brazil's defences industry.
'STRATEGICALLY IMPORTANT'
"The moment that control of Embraer passes to a company from another country, it will control strategic decisions" for Brazil, Jungmann said. "No country would give up control of that." He mentioned the Gripen fighter jets Embraer will build with Sweden's Saab AB <SAABb.ST> and the KC-390 cargo jet project with which Embraer plans to dominate the military transport market long dominated by the U.S.-made workhorse Hercules C-130.
Boeing and Embraer last year signed a deal under which the U.S. planemaker will help market the new military cargo jet but also provide maintenance services once they are sold.
The government's opposition to a full sale does not preclude a more targeted deal, according to a source familiar with the matter.