Non-Subscriber Extract
EADS to face charges from French regulators
By Guy Anderson
02 April 2008
French financial regulators have confirmed that they are preparing to level charges against EADS and Airbus executives based on allegations of breaches of market information duties and insider trading rules.
The Autorité des Marchés Financiers (AMF) said on 1 April that suspects and authorities will receive letters outlining specific allegations "during the coming days".
In response, EADS stressed that "it will support the managers in their defence", but conceded that "these proceedings may have significant consequences on its [EADS'] image and reputation".
The AMF investigation concerns share transactions ahead of 13 June 2006: the day on which EADS' share price dropped significantly following an announcement that the flagship A380 faced delays that would lead to costs of EUR2 billion (USD3.1 billion) between 2007 and 2010.