Airbus updates

French officials raided the offices of parent company EADS.

The probe is widely seen as crucial to the future of Co—Chief Executive Noel Forgeard, facing a media and political storm over a 2.5 million euro ($3.2 million) profit he made from stock options before big stakeholders sold shares in March.

Forgeard suffered a setback when President Jacques Chirac failed to offer clear support in a TV interview late on Monday.

Chirac said his former aide could not count on much support if an inquiry concluded he knew about the A380 delays before selling EADS shares earlier this year. "If this is established, then I would be shocked," Chirac told France 2.

His mentor's comments left Forgeard looking increasingly isolated as he fends off pressure for his dismissal over the A380 delays and a public outcry over stock options in general.

"It is the core battle. I would be surprised if [Forgeard's position] is not part of the final game plan," a source close to the matter said, asking not to be identified.

EADS management "fixes" are said to be being "finalized."

[Finance Minister] Breton also indicated France had dropped earlier demands to change the shareholder pact underpinning the delicate Franco—German balance within European Aeronautic Defence and Space Co.

"The proposed solutions are in the process of being finalized" by the company's two main corporate shareholders, Breton said, "in conformity with the pact."

Breton also spoke to Reuters:

Breton also indicated France had dropped earlier demands to change the shareholder pact underpinning the delicate Franco—German balance within European Aeronautic Defence and Space Co.

"The proposed solutions are in the process of being finalized" by the company's two main corporate shareholders, Breton said, "in conformity with the pact."

Sources close to the talks said a swift announcement on the future of EADS had been shelved and may not be ready until next week. "Nothing has been announced, because it is not ready," said one source, asking not to be identified. [emphasis added]

Dennis Sevakis   6 27 06

French officials raided the offices of parent company EADS.

The probe is widely seen as crucial to the future of Co—Chief Executive Noel Forgeard, facing a media and political storm over a 2.5 million euro ($3.2 million) profit he made from stock options before big stakeholders sold shares in March.

Forgeard suffered a setback when President Jacques Chirac failed to offer clear support in a TV interview late on Monday.

Chirac said his former aide could not count on much support if an inquiry concluded he knew about the A380 delays before selling EADS shares earlier this year. "If this is established, then I would be shocked," Chirac told France 2.

His mentor's comments left Forgeard looking increasingly isolated as he fends off pressure for his dismissal over the A380 delays and a public outcry over stock options in general.

"It is the core battle. I would be surprised if [Forgeard's position] is not part of the final game plan," a source close to the matter said, asking not to be identified.

EADS management "fixes" are said to be being "finalized."

[Finance Minister] Breton also indicated France had dropped earlier demands to change the shareholder pact underpinning the delicate Franco—German balance within European Aeronautic Defence and Space Co.

"The proposed solutions are in the process of being finalized" by the company's two main corporate shareholders, Breton said, "in conformity with the pact."

Breton also spoke to Reuters:

Breton also indicated France had dropped earlier demands to change the shareholder pact underpinning the delicate Franco—German balance within European Aeronautic Defence and Space Co.

"The proposed solutions are in the process of being finalized" by the company's two main corporate shareholders, Breton said, "in conformity with the pact."

Sources close to the talks said a swift announcement on the future of EADS had been shelved and may not be ready until next week. "Nothing has been announced, because it is not ready," said one source, asking not to be identified. [emphasis added]

Dennis Sevakis   6 27 06