Case study on insider trading: Airbus and EADS

Résumé du document

In a context of economic globalization and consumerism, the economy often difficult to follow the road as complex legal processes come into line of sight, and complicate the task of regulating market, e.g. consortium Airbus-EADS or Boeing-Airbus duopoly.
Maneuvers accelerated ongoing restructuring aeronautical industries are difficult to grasp, unveiled in spurts over changes. And complicated in the case of Airbus because of the complexity of relations between EADS Holding, which has been difficult recent tribulations, and two levels of operating Airbus (founded in 1976 by France and Germany), the AIC or Airbus management entity, and various industrial branches by States.

Boeing has absorbed its rivals in the U.S., EADS-Airbus had merged French Aerospatiale and Matra, the German company DASA (Daimler) part of the Spanish CASA in the 2000s. This does not preclude you from having some inroads in the military, in the case of the Airbus 400M or to the aircraft and the cargo version of the A330 tanker converted into military aircraft.

Finally, indecision is even stronger than the two manufacturers announce either delays in implementation and delivery of new aircraft programs (A380 airbus) for which major innovations were launched, whether it be technical innovations or new organization of global production process. We will treat the case Airbus-EADS.

Since the early 2000s, Airbus is on a par with Boeing some years; Airbus has sold more planes than its rival. 2007, an exceptional year, was more favorable to Boeing in 1415 had sold against 1,341 for Airbus. But it has delivered more aircraft than its competitor. Recall some figures: during the years 1955 and 1960, Caravelle was sold 272 copies, Concorde product 16. Airbus has surpassed 5,000 units delivered.

Extraits

[...] Presentation of the Airbus-EADS consortium EADS was created in July 2000 by the government of Lionel Jospin on three fundamental principles: building a European-based group and global vocation (shareholder structure: Daimler / Chrysler State French and Lagardère (including 7.5 presold by Lagardère for the state) for the Spanish State for a Russian bank, from 35 to 37% in exchange), the Franco-balance German and exclusive commitment of operators. The founding pact is the central element that makes the originality of EADS. Main civil subsidiary of EADS for the construction of aircraft, Airbus is a crucial issue for the French and European industrial policy. The manufacturer has reached a position of world leader, able to compete with its rival and only competitor, the American Boeing. He is carrying a European project is exchange industrial crops. EADS has seen the creation of a large European group. [...]

[...] Insider trading is an unfair processes that false confidence in the equal market investors. The insider is or allows others to act in the total absence of hazards, and thus achieve successful operations. It concerns the fact of using inside information, acting on the regulated markets of the Paris stock exchange on the basis of this information, or obtained directly by a person because of his activities, for example a publicly traded company. Is received (concealment of insider trading) of a person with this information, to make a profit trading in the securities or assets involved, before the information becomes public, while resulting in a decrease or an increase share price, it is also called securities law commits an offense insider who transferable security operations. [...]

[...] However, for nearly three years, EADS / Airbus is in crisis. Crisis management first, amid Franco-French French-German and internal rivalries, where concerns can have more leaders mobilized the technical monitoring. These internal struggles dating from the fusion Aerospace / Matra in 1999 and the creation of EADS shareholders with a favorable Lagardère and Germany's Daimler in 2000, mingling personal ambition, political maneuvering, and plan social restructuring, especially after the death of JL Lagardère, they lead (besides Clearsteam case destabilizing part of officers) the failure of the "Matra Boys' clan and the resignation chain leaders suspected of crimes of insiders, including the CEO N. [...]

[...] ϖ Bregier In October 2006, during the implementation of the Power 8 plan, he was appointed Chief Operating Officer (COO) of Airbus; it will form later the office of the presidency with Airbus Thomas Enders then Executive Chairman of Airbus. ϖ Jean-Louis Gergorin It is the precursor of the company Eads and is the origin of the rapprochement between the French and German skills. ϖ Louis Gallois He was president of Airbus in October 2006, then President of EADS in July 2007, is the current CEO of Airbus-EADS. ϖ Lagardère This group was founded by entrepreneur Jean Luc Lagardère in 1980 and developed in 1987 especially with the Matra privatization under the Chirac government. [...]

[...] Copyright problem in the Airbus-EADS group Insider trading: definition and causes Aftermath 3. The problem of governance in the Airbus-EADS group At production Level employees 4. Some solutions applicable in Airbus-EADS to resolve the crisis Legal sanctions Political sanctions Administrative sanctions Conclusion Introduction: In a context of economic globalization and consumerism, the economy often difficult to follow the road as complex legal processes come into line of sight, and complicate the task of regulating market, e.g. consortium Airbus- EADS or Boeing-Airbus duopoly. [...]