Airbus shares tumble on reports of US investigation

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Mumbai, Dec 20 (IANS) Shares of global aerospace major Airbus fell by around 5 per cent during Thursday’s afternoon trade session on the Paris Stock Exchange, after international reports said US would join a global investigation on the company over corruption allegations.

Accordingly, the scrip of the aircraft manufacturer traded at 82.92 euros per piece at 14.50 CET (7:20 p.m. IST) down 4.91 per cent from its previous close of 87.20 euros.

The stock has touched an intra-day low of 78.83 euros.

The sharp correction in the scrip price was triggered after international media cited a report by France-based newspaper — Le Monde — which said that the US is joining a global inquiry over the company’s usage of agents or intermediaries when it negotiated several large contracts abroad, particularly in Asia.

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As per the newspaper’s report, the US Department of Justice (DoJ) launched an official investigation at the end of 2017.

In addition, the company faces investigations by the British Anti-Corruption Agency and from the National Financial Prosecutor’s Office (PNF) in Paris.

–IANS

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