Watchdog eyes insider trading at EADS

Published 10:11 am Wednesday, October 3, 2007

European Aeronautic Defence and Space Co. can’t catch a break.

The parent company of Airbus saw the European plane maker’s lead in the commercial jet orders race disappear in 2006. Deliveries of its superjumbo jet slid as much as two years, costing the company consumer confidence and billions of dollars. Plans to sell off factories and slash staffing levels faced testy opposition from governmental leaders in Europe.

Less than two weeks from delivering its first A380, with a simplified management system in place, EADS now faces regulator claims of “massive” insider trading.

EADS has been under investigation for the past year, following the June 2006 delay of the A380. The probe launched by French authorities looked into stock trading by top management from November 2006 into 2006 as the company announced delays with its A380 and its A350 jet, meant to challenge Boeing’s 787.

A preliminary report released this week alleges that as many as 21 top managers at EADS conducted illegal trading. French prosecutors could file charges in the next few months. German officials also are conducting an investigation of EADS.

EADS stock fell roughly 1 percent today in Paris.

Meanwhile, a Wachovia analyst recommends Boeing Co. stock, which is trading at roughly $105.16 this morning, down about 77 cents.