Regulators Raid EADS in Probe of Stock Sales

French regulators raided the Paris offices of Airbus parent European Aeronautic Defense & Space Co. on Tuesday, piling extra pressure on a company grappling to contain a fierce internal feud sparked by a costly delay to the A380 super-jumbo jet.

EADS said French securities officials had visited its headquarters as part of a probe into share trading leading up to the mid-June announcement of A380 production delays and a profit warning that sheared a quarter of the value off its stock.

“EADS is continuing to fully cooperate,” the company said.

The probe is widely seen as crucial to the future of co-Chief Executive Noel Forgeard, who is 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 French President Jacques Chirac failed to offer clear support in a TV interview 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 said.

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.

Chirac’s backing helped Forgeard win a power battle with the EADS German camp last year when he was promoted from Airbus.