Boeing-Embraer proposal involves setting up new company - gov't source

BRASILIA, Feb 2 (Reuters) - The latest proposal for a tie-up between Boeing Co and Brazilian planemaker Embraer SA would include the creation of a third company, a government source told Reuters.

Earlier on Friday, Globo TV reported that Embraer had accepted Boeing's new proposal to form a third company to make passenger planes, and that the new entity would not involve Embraer's defense division. (Reporting by Ricardo Brito Editing by Chizu Nomiyama)