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EADS Headquarters Raided by French Police

The French police searched the headquarters of the European Aeronautic Defense & Space (EADS), parent company of Airbus, in relation to suspicion of insider trading. The search hampered yesterday`s celebration of Airbus`s A380, super-jumbo-jet, approval for sale. A few hours before the ceremony, in which the European and American airline agencies gave the plane an official safety approval, the police presented its warrant to search the company`s main offices in Paris.

The search is related to a criminal investigation on suspicion of insider trading regarding the delays in the A380 production. The investigation began November 20, 5 months after former French co-chief executive, No?l Forgeard, and a few of his colleagues sold company shares before publicizing the findings of its internal investigation that discovered production flaws in the A380. At the same time, the two companies DaimlerChrysler and Lagard?re announced that they are selling a part of their holdings in EADS.

Forgeard denied the allegation. This has been the fifth search in EADS` offices this year. The searches have been related to different charges. Yesterday`s search was the first to be related to insider trading. Louis Gallois, Airbus chief executive said that EADS will fully cooperate with the investigation, keeping an open mind. Gallois added that despite the difficulties Airbus is a forward moving company. Regarding the A380 Gallois said: "This double seal of approval represents a key milestone for the A380 program. It provides clear evidence of the technical soundness of the A380."