Boeing in lead for $7.4B Korean deal

|About: The Boeing Company (BA)|By:, SA News Editor

Boeing (BA) looks to be in the lead to win a $7.4B fighter-jet order from South Korea after reportedly being the only one of the three companies vying for the deal to submit a tender that was under budget.

"We believe our F-15 proposal can affordably meet the Republic of Korea's requirements," was Boeing's response to the speculation.

Under Korean law, the government is not allowed to sign a contract that tops the allotted budget.

Korea said on Friday that one of the offers met the financial requirements but didn't identify which one. On Sunday, officials said one of the bidders tried to bring its offer within budget by changing previously agreed conditions, but the government's having none of it and considers the offer over budget. Sources say the company was EADS (EADSF.PK).

The other contractor in the race is Lockheed Martin (LMT).