TOP EXECUTIVES and core shareholders of EADS were aware as early as June 2005 that profits in the group's core Airbus subsidiary faced a "probable decline over the medium to long-term", according to a report by the French stock market regulator, which is alleging huge insider dealing at the Franco-German group.
In a report published by Mediapart, a French news website, France's Autorité des Marchés Financiers lays out the results of its two-year investigation into controversial share sales in themonths ahead of a surprise profit warning that knocked a quarteroff the stock's value in June 2006.
The regulator alleges that 17 past and present executives of EADS and its aircraft subsidiary, Airbus, sold shares for a total profit of €20m while in the possession of what it has defined as privileged information.
It also sharply criticises EADS for allowing market expectations to diverge significantly from its own internal scenarios.
The AMF has refused to confirm the status of the report.
However, it said that it had sent out copies of its findings to all those who stand accused of market abuse, and who would now have the opportunity to defend themselves.
Core shareholders Lagardere and Daimler are also in the frame for having sold shares in April 2006.
The investigation has been highly controversial, especially since a preliminary report was leaked to French media last autumn.
EADS, which strongly denies the charges, as do its executives and shareholders, yesterday expressed its outrage at the leak.
"This is the second time that confidential AMF documents have been leaked to the press.
" EADS is not only surprised but really shocked to see how legal procedure and the rights of defence are simply ignored.
"Obviously we cannot give any comment as long as we have not read and evaluated the full document."
The company insisted that no charges had been proven and all parties continued to be presumed innocent.
The report accuses virtually the whole EADS management team,including Tom Enders, head of Airbus, and John Leahy, the aircraft maker's top salesman.
All those involved have denied any wrongdoing.
