French stock exchange regulator AMF College believes it has found evidence ” following a long-running inquiry ” of a failure to comply with market trading rules at Airbus parent company EADS.
EADS - as well as the concerned company and Airbus executives - have formally taken notice of the decision of the AMF to initiate proceedings, respectively for breach of market information duties and for breach of insider trading rules.
The issue surrounds whether employees had insider knowledge of delays with its Airbus A380 superjumbo before selling shares in the company.
The European aerospace giant said the regulator considered that the elements gathered during the investigative phase of the inquiry, ”as interpreted by AMF”s investigators, do not justify a dismissal of the case.”
EADS CEO Louis Gallois said: ”At last, EADS and its managers concerned will be in a position to defend themselves. EADS will support its managers in their defence; it intends to demonstrate that it has applied standards of excellence when communicating to the market, and has acted with full transparency.”
The company”s statement said that people involved ”will be able to confront AMF's interpretation with their explanation of the facts of the case” and that they ”intend to vigorously exercise their defence rights with the support of EADS, in front of the Sanction Commission of the AMF which will decide whether to impose fines after due hearing of the parties.”
EADS considers that the financial risk associated with this procedure and its possible consequences is not material but ”recognises that these proceedings may have significant consequences on its image and reputation.”
EADS owns Airbus, whose A380 is beginning to enter service around the world - notably, on the Singapore-London route last month.
This is the ”first step of what is likely to be a long process,” read the statement.