Forgeard Fallout
The arrest and questioning of former head honcho at EADS, Noel Forgeard comes as a completely anti-climatic event.
Investigations being conducted by the French regulatory body, AMF, have made what is likely to be the first of many arrests in this epic saga of who knew what, when they knew it, how they traded in stock for their self gain - all amidst the turmoil of the A380 being delayed due to the sheer incompetency of the Franco-German partners under Forgeard’s watch.
Since the painful birth of EADS back in 2000, the relationship between the French and German partners has been volatile as each seeks to undermine the other in its quest to rein in control over the company. One only need to look at the wisdom behind the “dual-CEO” management approach to see that this was a wedding strewn with marital discord from the outset.
Yet the legacy of those early years is what will ultimately unravel the mysteries of the share dealing allegations.
Il n’était pas moi!
Image courtesy of Spiegel
Forgeard has made no secret that he won’t face the music alone. While denials and “no comments” from former colleagues Tom Enders, John Leahy and Manfred Bischoff are expected, equally, it is almost certain that these and other individuals will be questioned by the AMF.
Who else will Forgeard name in this investigation? What lengths will he go to exonerate himself at the expense of others?
As an American citizen, Leahy runs the added risk of the U.S Department of Justice stepping in if he is implicated. This corporate uncertainty arrives at a time when Airbus has yet again publicly sought taxpayer money to protect jobs for the A350XWB and when getting credit on the open market is much harder to do. With Lehman Brothers analyst Joe Campbell slamming EADS as a “liability“, confidence for the company is likely to drop further before any meaningful rebound can be seen.
Without funding, the A380 debacle is one that may just be the undoing of the A350 - and that’s a project Airbus simply cannot afford to be late with.
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3 comments June 2nd, 2008
