'Insider trading found at Eads'

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French stock market regulator AMF is examining allegations that senior managers at the engineering giant sold shares shortly before announcements were made of costly delays to its Airbus A380 superjumbo launch almost two years ago.

The Stock Exchange announcement about the delays, when it was issued in June 2006, sent Eads shares crashing.

It later emerged that key personnel had offloaded shares prior to the declaration, causing a huge scandal.

The AMF has been examining how much the share sellers knew about the forthcoming announcement.

The regulator will now send its full findings to Paris prosecutors, while informing the accused and giving them a chance to respond.

Eads today defended its actions and said it would support its managers but warned the inquiry could have "significant consequences on its image and reputation".