French Face Insider Trading Accusations

The French Finance Minister has today faced questions as to the government’s conduct in the allegations of insider trading at Airbus, which is alleged to have been lax in allowing suspicious share trades to go through uncontested.

Minister Christine Lagarde has today declared that the government had not acted in any way untoward in relation to the events that have led to accusations of insider trading at the parent company of Airbus, EADS.

Denying knowledge of any irregularities, Lagarde delivered her verdict in front of parliament today in the face of media speculation that she knew of problems with share sales that were allowed to run their course without government intervention.

It is rumoured that the trading took place just days before it was announced that the Aurbus 380 model production was going to be delayed, a factor which in turn had a strong negative effect on the value of the company’s share price.

Much of the debate has been fuelled by the French media as a result of apparently leaked documentation which is said to have revealed those under suspicion of the illegal trading.

Shares in the parent company of Airbus lost over 25% of their value overnight following the announcements of the delays, despite large sell offs immediately prior to the announcement which may have suggested some unfair advantage or knowledge.

It had been rumoured that the government, a major shareholder in Airbus, was aware of the pending delays in production which have been suggested to have led to several major shareholders selling out literally in the eleventh hour.

French President Nicolas Sarkozy has today vowed to conduct a full independent inquiry into the events surrounding the allegations, and indeed the role of the French authorities in the incident. Opposition members meanwhile called for an independent public review of the situation.

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