Mixed results for Safran’s subsidiaries last year and an internal investigation into accounting irregularities last December that resulted in top executive changes have again raised the question of the wisdom of the controversial merger of leading French aerospace and engine and equipment manufacturing group Snecma and telephone and defense communications group Sagem.
As aerospace industry professionals continue to question the French government-inspired tie-up, announced in 2004, of two very different companies, here in Paris on Friday Safran chairman Jean-Paul Béchat told reporters, “The crisis with matters that raised questions of our credibility and created some internal disorder is over. I tendered my resignation to the supervisory board, effective as from September 2, 2007. On May 25 the accounts were accepted after the external auditors’ enquiry into Sagem Défense Security accounts and it was agreed there had indeed been a problem, but not with Jean-Paul Béchat.”
