Deutsche Boerse board expresses “full confidence” in chief executive Carsten Kengeter amid insider trading probe
Deutsche Boerse chief executive Carsten Kengeter has the “full confidence” of his board amid an insider trading probe relating to the company’s merger with the London Stock Exchange.
The company’s supervisory board met yesterday to discuss the allegations against Kengeter “thoroughly and intensely”, Deutsche Boerse said.
Read more: Spotlight falls on LSE-Deutsche Boerse merger: Who knew what, and when?
The board said it had made the “joint finding that no merger negotiations with the London Stock Exchange Group have taken place in the year 2015”.
Deutsche Boerse said its board discussions were preceded by “extensive conversations with external experts and a renewed analysis of the processes in the year 2015”.
The Public Prosecutor’s Office of Frankfurt last week searched the office and home of Kengeter as it sought to establish whether talks between the two companies were under way prior to a €4.5m (£3.9m) share purchase that Kengeter made in December 2015.
Morning Wire revealed yesterday that at least one Deutsche Boerse board member was apparently aware that London Stock Exchange chief executive Xavier Rolet had publicly stated that he was open to a merger with a rival up to eight months before Kengeter’s share purchase.
Read more: German minister: Merged stock exchange HQ must be moved from London
Meanwhile, the London Stock Exchange today confirmed it has offered to sell its French clearing arm, LCH SA, to Euronext as a proposed remedy to clearing concerns held by EU regulator the European Commission.
The commission will now market test this proposed remedy and the exchanges said its review timetable has been extended again to 3 April.