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Current EADS Exec Charged With Insider Trading  
User currently offlineNAV20 From Australia, joined Nov 2003, 9909 posts, RR: 36
Posted (6 years 4 months 1 week 6 days 2 hours ago) and read 2212 times:

"Andreas Sperl, 61, was arraigned on preliminary charges of insider trading and released on bail of €200,000, or $316,000, said Isabelle Montagne, the spokeswoman for the Paris prosecutor's office.

(Fair use excerpts)

"Sperl, the former financial director of Airbus, is the fourth person to be formally targeted in the investigation and the first who still works for the company. A German national, he is currently head of the European Aeronautic Defense & Space plant in Dresden."


This is a significant development since the first three people charged (Forgeard, Humbert, and Gut) were people who had left the company. Sperl, who is alleged to have made over $1M. by insider trading in 2005/6, is still part of the management team.

What's more, it looks as if he won't be the only member of the current management to face charges:-

"A total of 17 current and former executives, along with EADS shareholders Lagardère and Daimler, were cited in a recent report to prosecutors on suspected insider trading by France's market watchdog AMF."

http://www.iht.com/articles/2008/07/11/business/eads.php

Among others, earlier stories have named current Airbus head Thomas Enders, its commercial director John Leahy, Francois Auque, who heads EADS's Astrium space subsidiary and Fabrice Bregier, a former Eurocopter president who now is Airbus chief operating officer.

Difficult to see how management could go on functioning efficiently if a high proportion of the top people end up pre-occupied with defending themselves against criminal charges?

[Edited 2008-07-11 23:55:36]


"Once you have flown, you will walk the earth with your eyes turned skywards.." - Leonardo da Vinci
13 replies: All unread, jump to last
 
User currently offlineKen777 From United States of America, joined Mar 2004, 8412 posts, RR: 9
Reply 1, posted (6 years 4 months 1 week 5 days 23 hours ago) and read 2152 times:



Quoting NAV20 (Thread starter):
Among others, earlier stories have named current Airbus head Thomas Enders, its commercial director John Leahy, Francois Auque, who heads EADS's Astrium space subsidiary and Fabrice Bregier, a former Eurocopter president who now is Airbus chief operating officer.

Of those listed John Leahy would be the most damaging if indicted. While he could easily get out on bail he would probably have to surrender his passport, which would be a huge problem for Airbus.

Any time a large company gets hit at the senior executive level like may happen if the quoted paragraph is even reasonably correct there are major problems. Even if the person is not found guilty their work day is disrupted preparing a defense and during the trial. Keeping Leahy in country hurts even more as he is an exceptional salesman who ahs done a lot for Airbus and can continue to do so,

Personally I hope all are in the clear.


User currently offlineBabybus From , joined Dec 1969, posts, RR:
Reply 2, posted (6 years 4 months 1 week 5 days 21 hours ago) and read 2095 times:

And I thought according to Bloomberg or something Airbus was worth nothing. Seems a lot of people want to get their hands on something that's worth nothing.....including me.  Big grin

Some journalists come out with all sorts of nonsense.


User currently offlineNAV20 From Australia, joined Nov 2003, 9909 posts, RR: 36
Reply 3, posted (6 years 4 months 1 week 5 days 19 hours ago) and read 2020 times:



Quoting Babybus (Reply 2):
Seems a lot of people want to get their hands on something that's worth nothing.....including me.

Don't follow you, Babybus. When those blokes sold out the EADS share price was at about Euro34.00. As of last Friday it was down to Euro10.74. on the face of it THEY'RE the ones who didn't want to be left holding worthless stock.

They're entitled to a fair trial. But if it turns out that they used inside information to save their own financial skins and left the ordinary shareholders in the lurch, they deserve to have the book thrown at them. From Forgeard, Enders, and Leahy down..........



"Once you have flown, you will walk the earth with your eyes turned skywards.." - Leonardo da Vinci
User currently offlineLumberton From United States of America, joined Jul 2005, 4708 posts, RR: 20
Reply 4, posted (6 years 4 months 1 week 5 days 18 hours ago) and read 1980 times:

How many criminal investigations are there into the allegations of insider trading by EADS executives? AFAIK, there is one in France, but what about Germany?

I know there are civil suits pending in France, Germany, and the U.S. Any others?



"When all is said and done, more will be said than done".
User currently offlineNAV20 From Australia, joined Nov 2003, 9909 posts, RR: 36
Reply 5, posted (6 years 4 months 1 week 5 days 1 hour ago) and read 1848 times:

Lumberton, as far as I know the French investigation is the only criminal one. However, besides up to 17 individuals, the investigators have also indicated that they are looking into the cases of two companies (Lagardere and Daimler) who also engaged in selling off large numbers of shares in the early summer of 2006.

As far as the class actions are concerned, there are several building up in the United States. I believe that class actions are not usually possible under French law, but on the other hand it is presumably open to aggrieved French shareholders to sue in Holland, where EADS is registered.

Oddly enough, it could be that the class actions will in the end be a bigger problem for EADS than the charges against individuals and companies. The company announced its 2005 results and 2006 outlook on 8th. March 2006, and there are some 'juicy' quotes in the press release (excerpts):-

"EADS achieved its best results ever and will push for further growth as a global leader in the industry. Looking forward, we intend to further strengthen EADS' profitability and expand in tomorrow's growth markets," said EADS CEOs Thomas Enders and Noël Forgeard. EADS published its 2005 results on Wednesday.

----------------------

"The A380 is on track for certification, with the first delivery scheduled for the end of 2006. Airbus has already successfully completed close to 1.000 hours of flight testing with its four flying A380s and has received 159 firm orders from 16 customers to date, including three new customers in 2005. Launched in October, the A350 has received 172 firm orders and commitments from 13 customers by the end of 2005."


Given that a high proportion of the EADS/Airbus Executive Committee members who approved that release sold off large quantities of shares within days of issuing that 'rosy' forecast, I know which side of any legal arguments I'd prefer to be on.  Smile

Furthermore, at that time, as I said, the EADS share price was around E35.00 at the time. Anyone who bought shares on the basis of the March 2006 statement (including the institutions who bought Lagardere's and Daimler's shares) will be able to argue that, because the problems with the A380 and the A350 were kept quiet right up to early July, and have further advversely affected the company's prospects since, they have lost perhaps two-thirds of the amount they invested, and are entitled to 'dollar for dollar' compensation plus interest and costs.

Which, if a large number of people and institutions sue and win their cases, could very well result in compensation totalling many billions. In all probability exceeding the Euro8.6B. which is all EADS was worth at close of business last Friday.



"Once you have flown, you will walk the earth with your eyes turned skywards.." - Leonardo da Vinci
User currently offlineKnoxibus From France, joined Aug 2007, 260 posts, RR: 23
Reply 6, posted (6 years 4 months 1 week 5 days ago) and read 1834 times:

Just as a clarification, Sperl is CEO of the EADS Dresden plant. He is not a current Airbus executive, as per the current org chart of Airbus. The title is therefore misleading (but not for long I am sure  Wink ).

I am waiting for the day Enders will be summoned as well, then things will start to be really interesting.

Louis Gallois must be really pissed at how things are being managed at EADS/Airbus, I am sure he came to this position full of good faith and motivation, but it has been very difficult for him since it took the job, hope he lasts.



No matter what anybody tells you, words and ideas can change the world.
User currently offlineLumberton From United States of America, joined Jul 2005, 4708 posts, RR: 20
Reply 7, posted (6 years 4 months 1 week 4 days 20 hours ago) and read 1771 times:

Quoting Knoxibus (Reply 6):
Louis Gallois must be really pissed at how things are being managed at EADS/Airbus, I am sure he came to this position full of good faith and motivation,

Perhaps Christian Streiff saw this coming and took it into account when deciding to stay or go? Naturally, these weren't the stated reasons when he bailed, but one wonders if it wasn't a "background" issue?

BTW, Enders is characterizing the investigation as a "show trial". This will surely win him points with the French authorities.
http://ap.google.com/article/ALeqM5i...iibVIFCE-KwFKUt5clA_QRtwQD91SUG680

Quote:
Enders is one of 17 people suspected by the French Financial Markets Authority, or AMF, of possible insider trading. According to the AMF, he sold 50,000 shares for a profit of $1 million.

"This is a show trial, this is bad theater, and I think that needs to be said very clearly," Enders said Saturday in comments for release Sunday.

"The company I lead has an awful lot of challenges and that is where I spend my time," he told reporters in the southern English village of Dogmersfield.



[Edited 2008-07-13 05:49:58]


"When all is said and done, more will be said than done".
User currently offlineRevelation From United States of America, joined Feb 2005, 12837 posts, RR: 25
Reply 8, posted (6 years 4 months 1 week 4 days 19 hours ago) and read 1736 times:



Quoting Lumberton (Reply 7):
Enders is characterizing the investigation as a "show trial". This will surely win him points with the French authorities.

It seems EADS executives aren't aware of the ethical standards expected of them.

I am a non-executive employee with a large company, and we get ethics training annually. I'd imagine something like this should be in place at EADS, no? If so, maybe the executives aren't taking it?



Inspiration, move me brightly!
User currently offlineLumberton From United States of America, joined Jul 2005, 4708 posts, RR: 20
Reply 9, posted (6 years 4 months 1 week 4 days 19 hours ago) and read 1726 times:

I think at this point Herr Enders needs to refrain from public comments. Of course, he has maintained his innocence from the beginning, and this whole process has got to be extremely frustrating for him, but comments such as these do no good--for him, his fellow executives, and EADS. The only people that stand to benefit from this posturing is the press, who will report every protestation and claim with unrestrained glee. I suspect that it gives the investigators an incentive to turn the screws even more.


"When all is said and done, more will be said than done".
User currently offlineAirNZ From , joined Dec 1969, posts, RR:
Reply 10, posted (6 years 4 months 1 week 4 days 18 hours ago) and read 1705 times:



Quoting Revelation (Reply 8):
It seems EADS executives aren't aware of the ethical standards expected of them

A very gross and incorrect generalisation, and one which is an entire assumption on your part, don't you think? Could equally apply to your politicians as well.


User currently offlineRevelation From United States of America, joined Feb 2005, 12837 posts, RR: 25
Reply 11, posted (6 years 4 months 1 week 4 days 18 hours ago) and read 1697 times:



Quoting Knoxibus (Reply 6):
Just as a clarification, Sperl is CEO of the EADS Dresden plant. He is not a current Airbus executive, as per the current org chart of Airbus. The title is therefore misleading (but not for long I am sure Wink ).

Oh, the title now says "EADS Exec", did it used to say "Airbus Exec"? The text in the thread starter makes Sperl's role clear.

Quoting NAV20 (Thread starter):
"Sperl, the former financial director of Airbus, is the fourth person to be formally targeted in the investigation and the first who still works for the company. A German national, he is currently head of the European Aeronautic Defense & Space plant in Dresden."

All in all, it seems Airbus Execs must have a lot on their minds, between the insider trading scandal, the weakening dollar, etc.



Inspiration, move me brightly!
User currently offlineNAV20 From Australia, joined Nov 2003, 9909 posts, RR: 36
Reply 12, posted (6 years 4 months 1 week 3 days 23 hours ago) and read 1618 times:



Quoting Knoxibus (Reply 6):
Louis Gallois must be really pissed at how things are being managed at EADS/Airbus, I am sure he came to this position full of good faith and motivation, but it has been very difficult for him since it took the job, hope he lasts.

Knoxibus, Gallois was a Board Member at EADS from its inception in 2000. Having taken part in formulating its policies, and appointing people like Forgeard, he is at least as much part of the problem as he is part of any solution.

Quoting Lumberton (Reply 7):
Perhaps Christian Streiff saw this coming and took it into account when deciding to stay or go? Naturally, these weren't the stated reasons when he bailed, but one wonders if it wasn't a "background" issue?

My guess is that Streiff recommended appropriate (i.e. very severe) 'surgery' to stop the bleeding, the unions complained to the politicians, and he was 'asked to leave.' Then they appointed Gallois, who undertook to do everything 'by agreement,' with no forced redundancies etc. - and, above all, to continue the policies of 'fair shares for all' in terms of the (politically all-important) job split between France and Germany.

Which is largely why he hasn't yet succeeded either in returning the company to profit or in attracting any risk-sharing partners to buy any of the key plants or to put up any of the money required for development of the A350.



"Once you have flown, you will walk the earth with your eyes turned skywards.." - Leonardo da Vinci
User currently offlineRevelation From United States of America, joined Feb 2005, 12837 posts, RR: 25
Reply 13, posted (6 years 4 months 1 week 3 days 21 hours ago) and read 1594 times:



Quoting NAV20 (Reply 12):
Which is largely why he hasn't yet succeeded either in returning the company to profit or in attracting any risk-sharing partners to buy any of the key plants or to put up any of the money required for development of the A350.

I had presumed to get into the A350 program you'd have to be a risk sharing partner. So, for instance, I presumed Spirit was a risk sharing partner. I have been reading the various A350 articles. This article seems to say as much.

Quote:
The six major fuselage aerostructure risk-sharing packages have been allocated, with the major outstanding allocations including the horizontal and vertical tailplanes, belly fairing, rear fuselage, tailcone, pylon components, wing moveables and wire harnesses. "The target is to get the majority of them to be allocated by the detailed design freeze at the end of the year," says Caudron.

Much of the fuselage work has in fact been allocated to existing Airbus plants in France and Germany that will eventually be divested, which are dubbed French and German "newcos" for the time being. The allocation is as follows:

* French "newco" (St Nazaire-Ville and Meaulte plants) - nose section (three packages).
* German "newco" (Varel, Nordenham and EADS Augsburg plants) - forward fuselage section (including assembly), carbonfibre side fuselage panels for the aft fuselage, floor grid and rear pressure bulkhead (two packages).
* Spirit AeroSystems (North Carolina) - centre-section side and upper fuselage panels.

"The two 'newcos' will be created in France and Germany and owned by EADS," says Caudron. "The next step will be to open the capital of the shareholding to the public to meet the divestment target of Power8."

So it seems they can't find investors to buy the plants, so they intend to spin them off and offer shares to the public.



Inspiration, move me brightly!
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