rotornut
13th Dec 2006, 13:44
Police raid EADS, Lagardère as probe intensifies
AP
Police raided the headquarters of Airbus SAS parent EADS NV and a major shareholder as an investigation into suspect share dealings intensified yesterday, overshadowing a ceremony to mark the much-delayed A380's approval for commercial service.
Hours before the ceremony in Toulouse, France, at which European and U.S. aviation officials formally certified the 555-seater superjumbo for passenger flights, investigators presented search warrants at the Paris offices of EADS and Lagardère SCA.
Judicial officials, who asked not to be named citing French rules on the confidentiality of investigations, said the raids are part of a criminal probe into suspected insider dealing linked to the A380 production delays.
Prosecutors opened the investigation Nov. 20, five months after it emerged that ousted EADS co-chief executive officer Noël Forgeard and several of his former colleagues had sold off company stock ahead of an internal inquiry into the A380 problems. Lagardère and Germany's DaimlerChrysler AG also announced they were reducing their EADS stakes at about the same time. Mr. Forgeard has denied any wrongdoing.
EADS shares lost more than a quarter of their value in one day after the production problems were announced June 13. Later the same month, France's Financial Markets Authority opened an insider dealing probe and carried out searches at EADS and Airbus offices.
Louis Gallois, who replaced Mr. Forgeard in July and has since also taken the role of Airbus CEO, pledged "total openness" toward the police investigation.
The A380's certification had promised some much-needed good news for Airbus, set to fall behind U.S. rival Boeing Co. on orders this year for the first time since 2001.
With yesterday's certification, signed by officials from the European Aviation Safety Agency and U.S. Federal Aviation Administration, the world's largest passenger plane cleared its last official hurdle before the first delivery to Singapore Airlines Ltd. next October.
The ceremony completed a test-flight program in which five A380 planes have logged 2,600 flight hours since the closely watched first flight in April last year.
The accumulated delays to the A380, totalling two years, have wiped €4.8-billion ($7.34-billion) off forecast EADS profits -- a figure that includes estimates for the compensation paid to angry customers. EAD (Paris) rose 17 euro cents to €24.34.
globeandmail.com
AP
Police raided the headquarters of Airbus SAS parent EADS NV and a major shareholder as an investigation into suspect share dealings intensified yesterday, overshadowing a ceremony to mark the much-delayed A380's approval for commercial service.
Hours before the ceremony in Toulouse, France, at which European and U.S. aviation officials formally certified the 555-seater superjumbo for passenger flights, investigators presented search warrants at the Paris offices of EADS and Lagardère SCA.
Judicial officials, who asked not to be named citing French rules on the confidentiality of investigations, said the raids are part of a criminal probe into suspected insider dealing linked to the A380 production delays.
Prosecutors opened the investigation Nov. 20, five months after it emerged that ousted EADS co-chief executive officer Noël Forgeard and several of his former colleagues had sold off company stock ahead of an internal inquiry into the A380 problems. Lagardère and Germany's DaimlerChrysler AG also announced they were reducing their EADS stakes at about the same time. Mr. Forgeard has denied any wrongdoing.
EADS shares lost more than a quarter of their value in one day after the production problems were announced June 13. Later the same month, France's Financial Markets Authority opened an insider dealing probe and carried out searches at EADS and Airbus offices.
Louis Gallois, who replaced Mr. Forgeard in July and has since also taken the role of Airbus CEO, pledged "total openness" toward the police investigation.
The A380's certification had promised some much-needed good news for Airbus, set to fall behind U.S. rival Boeing Co. on orders this year for the first time since 2001.
With yesterday's certification, signed by officials from the European Aviation Safety Agency and U.S. Federal Aviation Administration, the world's largest passenger plane cleared its last official hurdle before the first delivery to Singapore Airlines Ltd. next October.
The ceremony completed a test-flight program in which five A380 planes have logged 2,600 flight hours since the closely watched first flight in April last year.
The accumulated delays to the A380, totalling two years, have wiped €4.8-billion ($7.34-billion) off forecast EADS profits -- a figure that includes estimates for the compensation paid to angry customers. EAD (Paris) rose 17 euro cents to €24.34.
globeandmail.com