AirMailer From United States of America, joined May 2006, 437 posts, RR: 0 Posted (6 years 12 months 4 days 8 hours ago) and read 1719 times:
ok, so I realize that this news release doesn't exactly pertain to any airline or aircraft as of yet but it still involves one of the largest aviation companies in the world.
Does anyone know what's up with this?
DOW JONES NEWSWIRES
December 12, 2006 11:00 a.m.
PARIS (AP)--Investigators were raiding the Paris headquarters of European Aeronautic Defence & Space Co. (5730.FR) Tuesday as part of a probe into alleged insider trading surrounding the Franco-German aerospace giant, according to sources close to the inquiry.
Another raid was underway Tuesday at offices belonging to French media-to-defense group Lagardere SCA (13021.FR), a longtime EADS shareholder which cut its stake in the company earlier this year, the sources said.
A spokesman for EADS confirmed to Dow Jones Newswires that a raid was taking place Tuesday, but gave no further details. He said EADS was cooperating with the ongoing investigation.
AirMailer From United States of America, joined May 2006, 437 posts, RR: 0 Reply 2, posted (6 years 12 months 4 days 8 hours ago) and read 1715 times:
Quoting MrComet (Reply 1): Well, wasn't Forgeard under suspicion of this? He and others sold shares before public disclosure of the A380 problems.
Yes he was...
I just found this in an updated version of the article:
"Two investigating judges - Philippe Courroye and Xaviere Simeoni - were appointed at the end of November to look into allegations centering on the sale of shares by several managers at the group last March, weeks before EADS announced long delays to its planned Airbus A380 superjumbo, sending it stock price tumbling. "
AirMailer From United States of America, joined May 2006, 437 posts, RR: 0 Reply 4, posted (6 years 12 months 4 days 8 hours ago) and read 1628 times:
... Timing really sucks for them with the whole getting certification of the A380 today... maybe the investegators thought that it was a good time to pounce since a bunch of the executives were at press conferences... but I'm sure that it's actually just coincidental timing.
Osiris30 From Barbados, joined Sep 2006, 3184 posts, RR: 26 Reply 7, posted (6 years 12 months 4 days 7 hours ago) and read 1561 times:
This is bad news, because this will likely lead to class action lawsuits against EADS and tie up valuable resources for things like discovery, etc. Corporate lawsuits (especially of the nature these would be) can be VERY hard on a company if there is even the slightest hint of validity to the claims.
I don't care what you think of my opinion. It's my opinion, so have a nice day :)
NYC777 From United States of America, joined Jun 2004, 5565 posts, RR: 49 Reply 13, posted (6 years 12 months 4 days 7 hours ago) and read 1452 times:
Quoting Danny (Reply 12): I though Spiegel was a serious magazine. Are they accusing anyone who sold EADS shares in 2006??? Surely there are no 800 executives at EADS.
Regardless if there are 80 execs or 800 execs, it looks like the scope of this investigation is widening. Do they have anything, we don't know. They may very well find no evidence against any current of former EADS or Airbus executive, including Forgeard.
We will have to wait and see what evidence, if any, they turn up as a result of these raids.
Poitin From , joined Dec 1969, posts, RR: Reply 15, posted (6 years 12 months 4 days 5 hours ago) and read 1378 times:
Quoting Zvezda (Reply 14): Quoting Danny (Reply 12):
Surely there are no 800 executives at EADS.
I'll bet there were 800 Airbus/EADS employees who sold EADS stock after the employees found out.
Quoting Zvezda (Reply 14): Quoting Danny (Reply 12):
Are they accusing anyone who sold EADS shares in 2006???
Anyone who might have had access to inside information and sold after the delays became known to the employees but before the delays became known to the public.
An insider is anyone who has "insider knowledge". One classic example is the father of a CEO's secretary who found out from his daughter that the company was about to tank. She, in turn, found out in bed. Her father dumped his stock and got five years -- suspended, a heavy fine and three months cleaning trash off the side of route 101 every Saturday.
I would be surprised if it is limited to 800. Basically anyone who sold stock in that narrow time frame is suspect. And under French law you have to prove you didn't do it.
I am surprised and pleased that they are actually investigating this seriously. I was expecting the old rug over the dirty spot trick.
Dougloid From , joined Dec 1969, posts, RR: Reply 16, posted (6 years 12 months 4 days 5 hours ago) and read 1335 times:
Quoting Danny (Reply 5): Quoting NYC777 (Reply 3):
What may have been an initial investigation into the share sale by Forgeard seems to by widening to others within Airbus and EADS.
There is no indication of that. They may have been searching for evidence in Foregard case.
here's what APPAC, which is a French association of small shareholders thinks.
Appac, the French shareholder association, asked prosecutors last month to widen their investigation to include top executives DaimlerChrysler and Lagardère, alleging that the two companies would have known at that time of new delays to the A380 that were not made public until June 13.
"Small shareholders were left in the dark and lost their savings," said Didier Cornardeau, the Appac president, in a recent interview. "I cannot accept the explanation that they did not know, because that is the same as admitting that they are incompetent," he said, referring to managers of the two companies as well as EADS.
It's quite simple. The managers knew enough about what was happening and what was in the works to dump their stocks before the bad news got out they tanked.
If there's a French equivalent to 'moral bankruptcy' I wonder if someone would share it with the crew?
NAV20 From Australia, joined Nov 2003, 9741 posts, RR: 37 Reply 17, posted (6 years 12 months 3 days 23 hours ago) and read 1263 times:
Quoting Poitin (Reply 15): Basically anyone who sold stock in that narrow time frame is suspect. And under French law you have to prove you didn't do it.
The net may spread pretty wide. Besides Forgeard, the EADS site identifies two other Board members (Hans Peter Ring and Jean-Paul Gut) and four Executive Committee members (Auque, Bregier, Itavuori, and Zoller) as having 'exercised share options for immediate sale' between 8th. and 24th. March 2006.
Details of numbers of shares, option prices, sale proceeds etc. on the EADS site:-
NAV20 From Australia, joined Nov 2003, 9741 posts, RR: 37 Reply 19, posted (6 years 12 months 3 days 22 hours ago) and read 1218 times:
Quoting Mham001 (Reply 18): Im still wondering about BAE which took a bath on its shares
BAE was selling its stake in the Airbus Division, Mham001. The value of that was based on trading/profit prospects in future years, not day-to-day share prices. Those prospects were looking bad after the first announcement of A380 delays, they arguably look even worse now. I would think that, though disappointed with the value assessed by the arbitrator, BAE are happy to have got clear.
The interests of Lagardere and Daimler-Chrysler are indeed measured in EADS shares. Both of them want to reduce their exposure to Airbus' problems too - but their shareholdings are effectively the basis of Franco-German control, so they virtually have to get Chirac's and Merkel's 'permission' to sell.
Besides, EADS shares are still down over 30% on their value when the likes of Forgeard sold out.
[Edited 2006-12-13 03:53:02]
"Once you have flown, you will walk the earth with your eyes turned skywards.." - Leonardo da Vinci