Friday, June 16, 2006

Blood In the Water II; EADS On the Warpath?

The Associated Press reports this day that EADS is going to launch a probe into the A380 dustup, paying particular attention to issues of mismanagement and some suspicious stock trading that family members of highly placed Airbus executives have been involved in.

Mr. Lagardere, co chairman of EADS says he had no knowledge of the A380 production problems until the word came out from Festung Airbus the other day. In particular, EADS wants to find out, what did Humbert and Forgeard know, and when did they know it?

It seems that Mr. Forgeard, his family members, and other Airbus execs exercised a passel of stock options and otherwise cleared out their holdings prior to the announcement of a further six month delay in deliveries of the Albatross.

That, in itself, is mighty suspicious conduct that would probably fail the sniff test if the Securities and Exchange Commission was overseeing things-we do not like insider trading here.

I've changed my view. That is not the odor of decomposition I smell-it is the smell of a reactor overheating and going into meltdown.

Rollin, rollin, rollin! Keep those tumbrils rollin!


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