EADS board told of A380 delays before Forgeard options sale - report UPDATE |
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Tue, 29 May 2007 09:12
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(updates with details of other options sales, background)PARIS (Thomson Financial) - Delays to the Airbus A380 development programme were discussed at a meeting of EADS' board of directors on March 7, 2006, immediately before former CEO Noel Forgeard exercised options on the stock, French business daily La Tribune alleged.Forgeard, who has consistently maintained he was unaware of the problems facing the superjumbo's development when he exercised the options, sought authorisation allowing him to sell the options on that evening, it added.The newspaper quoted former Airbus client Jean Galli Douani as its source.Douani gave La Tribune what he said were details of a conversation with Airbus' technical director Alain Garcia, in which he was told the board meeting on March 7 discussed 'serious industrial problems at Airbus,' and 'significant' delays to the A380.Officially, however, the meeting only broached the subject of the A350 and Airbus' technologoical research programme, the paper said.Forgeard sought authorisation allowing him to sell the options on the evening of March 7, the newspaper added.Forgeard has consistently maintained he was unaware of the A380 problems when he exercised the options.All EADS' executive managers, with the exception of Airbus CEO Gustav Humbert and EADS co-CEO Thomas Enders, subsequently sold their stock options, while shareholders Lagardere and DaimlerChrysler decided on March 20 to each sell a 7.5 pct stake in the aerospace giant.French markets regulator AMF is in the process of questioning EADS executives as part of a probe into alleged insider trading, relating to the sale of millions of euros worth of shares last spring just before the announcement of major delays to the A380.Arnaud Lagardere, whose company Lagardere remains a key EADS shareholder, is to be questioned by the AMF today, according to reports, while former co-chairman Manfred Bischoff and current chief operating officer Jean-Paul Gut were questioned on May 24 and May 22 respectively.According to a report last week in Le Monde, Gut denied the accusations at the AMF hearing, saying he had informed EADS of his intention to sell his shares as early as Jan 2006, and had been given the impression the A380 delays were 'under control.'vicky.buffery@thomson.comvb/jmsCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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EADS board told of A380 delays before Forgeard stock options sale - report 