PARIS, 3 October A serious insider trading scandal erupted around European plane maker Airbus today, threatening to overshadow the launch of the group’s star product, the superjumbo A380, later this month.
A source told AFP today that about 20 executives at Airbus parent company EADS have been accused of massive insider trading in a preliminary report prepared by the French stock market regulator AMF.
The report has been sent to a judge who since November last year has been looking into allegations of illegal share dealing at the European Aeronautic Defence and Space Company (EADS), the source said.
Airbus, a unit of the EADS, has been rocked by a series of management, production and design difficulties dating back to March 2006, and deliveries of its A380 have been delayed by 18 months.
The first delivery on 15 October to Singapore Airlines has been seen as the start of a new chapter for the company, given that manufacturing of the giant doubledecker plane has been the source of most of Airbus’s woes.
French newspaper Le Figaro reported earlier today that the AMF document alleged that management and shareholders at EADS had engaged in heavy insider trading by selling shares before major problems at Airbus were made public.
The newspaper Le Figaro earlier reported that the document alleged that management and shareholders at EADS had engaged in heavy insider trading by selling shares before major problems at Airbus had been made public.
Newsflow sent Lagardere’s share price tumbling 5.42% to 58.45 euros and EADS stock fell 0.78% to 21.71 euros.