Former EADS chief targeted in share probe

By Thierry Leveque and Tim Hepher

PARIS (Reuters) - Former EADS (EAD.PA) co-chief executive Noel Forgeard has been placed under formal investigation on suspicion of insider trading while at Europe's largest aerospace group, his lawyer said on Friday.

Two judges are investigating the selling of stock in 2006 by people inside EADS, weeks before the Franco-German-Spanish company's Airbus unit unveiled delays to its A380 superjumbo.

The "shocked" 61-year-old was freed on bail in the early hours of Friday on condition that he pay a sum yet to be specified, his lawyer Jean-Alain Michel said.

Forgeard had been held in police custody for around 36 hours before appearing in front of judges late on Thursday.

The announcement of worsening delays in building the world's largest airliner wiped a quarter off the value of EADS (EAD.PA) shares in June 2006 and triggered Forgeard's resignation.

EADS shares were 2.2 percent higher at 14.75 euros by 8.02 a.m. British time on Friday, boosted by a dip in high oil prices which had raised concerns over the capacity of cash-starved airlines to renew their fleets.

Forgeard and other current and former executives have denied knowing about the A380 delays when exercising their right to trade stock in March 2006. EADS also has denied wrongdoing.

Forgeard's lawyer said he had been cleared on a second count requested by prosecutors, that of misleading financial markets.