Airbus: stock hit after investigation opened in the US
(CercleFinance.com) - The Airbus is down sharply on Thursday afternoon, falling nearly 5% in Paris, with the newspaper Le Monde having revealed the opening of a legal investigation in the United States, on suspicion of corruption, which comes in addition to the procedures that are already underway in France and the UK.
The Airbus share had even fallen by nearly 10% in late morning trading, reaching its lowest level since February 2018.
It should be said that the information announced by the newspaper is far from reassuring. While the group has decided to cooperate fully with the investigators (who officially started their work in late 2017), it still faces a fine of several billions of dollars. This comes as a big blow, although it could be even worse. Le Monde has even mentioned a "catastrophic scenario": a criminal conviction of Airbus as a legal entity.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The Airbus share had even fallen by nearly 10% in late morning trading, reaching its lowest level since February 2018.
It should be said that the information announced by the newspaper is far from reassuring. While the group has decided to cooperate fully with the investigators (who officially started their work in late 2017), it still faces a fine of several billions of dollars. This comes as a big blow, although it could be even worse. Le Monde has even mentioned a "catastrophic scenario": a criminal conviction of Airbus as a legal entity.
Copyright (c) 2018 CercleFinance.com. All rights reserved.