EADS executive aware of Airbus A380 delay (Possible insider trading)

MarketWatch ^ | 16 June 2006 | Steve Goldstein

[Yo-Yo]

EADS executive aware of Airbus A380 delay
Known in April, but not disclosed; French regulator probes
By Steve Goldstein, MarketWatch
Last Update: 7:55 AM ET Jun 16, 2006

LONDON (MarketWatch) -- The co-chief executive of EADS, the majority owner of plane maker Airbus, said Friday that he knew the company was having trouble with the wiring of A380 superjumbo as early as April, and the French stock market regulator confirmed that it was examining the issue.

EADS tumbled 26% on Wednesday on disclosure that deliveries of the A380 could be delayed by seven months and after warning that profits from 2007 to 2010 would be reduced by around 500 million euros ($632 million) a year. See story on the production delay.

EADS Co-CEO Noel Forgeard made the comments about the April knowledge to French radio station Europe 1, wire services reported Friday. Forgeard said EADS didn't disclose the information to the market at the time because it thought the problems could be alleviated.

He also defended his decision to [sell] shares in March that resulted in a 2.5 million-euro ($3.2 million) gain, saying the decision to sell his shares, and that of family members, was an "unfortunate coincidence." He told the radio station that the delay was [a] "glitch" and that it hadn't lost any A380 orders as yet.

Singapore Airlines, Lufthansa and Emirates have committed to ordering the 515-seat plane. Forgeard, who was Airbus CEO prior to becoming co-chief of the parent company, has been under pressure to resign since the announcement of the delay, and co-chairman Arnauld Lagardere told the French newspaper Le Monde an internal probe has been launched. Lagardere told the newspaper that Airbus CEO Gustav Humbert, who took the reigns last summer, is being probed.

The French AMF financial market regulator on Friday issued a statement saying it has been inquiring into EADS for "several weeks." The "most recent events" will be included in this investigation into EADS share price moves, the regulator said.

EADS shares fell 1% Friday at 19.80 euros, down from 25.42 euros before the profit warning.

EADS owns 80% of Airbus and has agreed in principle to buy the remaining 20% from Britain's BAE Systems

[Yo-Yo]

Mssr. Forgeard sells half of his stock in EADS just prior to the stocks losing almost half their value, he admits he knew there were problems with the A380 production schedule prior to selling, and all he can say is that it was an "unfortunate coincidence?"

I wonder if the courts will be as understanding.

[Youngman442002]

'unfortunate coincidence?"

Pork Bellies.....just like Hillary..pork bellies

[Eric in the Ozarks]

Excuse me, Noel. The Bulls**t light on my computer in blinking...

[Yo-Yo]

I believe Hillary was a genius at trading Cattle Futures.

[antiRepublicrat]

This almost makes Ken Lay look pristine.

[COEXERJ145]

Ping to you.