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Aerospace firm Cobham faces FCA probe over handling of inside information

Cobham, the embattled aerospace and defence firm, is facing an investigation by the financial watchdog over its handling of inside information.

The Financial Conduct Authority (FCA) told the firm that its enforcement division has launched a probe into the company's actions before announcing a trading update and rights issue in April last year.

In a statement, Cobham said its £500 million rights issue made on March 2 was "on track" and it was "cooperating fully" with the FCA.

The firm revealed its latest capital raising earlier this month as it looks to pay down debt after clocking up hefty losses.

The group, which has issued a number of recent profit warnings, only embarked on its last emergency rights issue in June, when it raised £506.7 million.

The scale of the challenges facing the board was revealed at the beginning of the month when it announced crippling full-year pre-tax losses, ballooning from £39.8 million last year to £847.9 million.

Shares in the firm were down more than 2% in early afternoon trading.

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