Charges due in insider-trading probe

France’s stock market regulator said today it will proceed with charges in connection with its probe into alleged insider-trading at Airbus parent company EADS.

The Autorite des Marches Financiers said in a statement that it will notify people concerned with the investigation in the “coming days”, and will transfer the investigation “immediately” to the Paris prosecutors’ office.

AMF and the French judicial authorities are investigating an alleged insider trading case concerning EADS’ management and main shareholders in 2005 and 2006, when shares of the company were massively sold just ahead of announcements of delays in deliveries of the A380 superjumbo.

The AMF board met yesterday to discuss the conclusion of a report on the probe, the statement said.

A report today in French financial daily Les Echos said the board, in its final report, adopted “almost totally the conclusions of the authority’s investigator, who last September confirmed the existence of 'massive' insider trading”.

In a statement today, EADS said it had “take(n) notice of the decision of the AMF” and quoted CEO Louis Gallois as welcoming the decision.

“At last, EADS and its managers concerned will be in a position to defend themselves”, the statement quotes Gallois as saying.

“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 statement also said the “financial risk associated with this procedure and its possible consequences is not material” but acknowledged that the proceedings “may have significant consequences on its image and reputation”.