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Published: Fri, February 03, 2017
Economy | By Melissa Porter

Deutsche Boerse chief executive in insider trading probe

Deutsche Boerse chief executive in insider trading probe

Carsten Kengeter chief executive of the Frankfurt stock exchange Deutsche Boerse is being investigated by German prosecutors for insider trading ahead of merger talks with the London Stock Exchange (LSE).

Kengeter purchased almost 69,000 shares in Deutsche Boerse (DBOEF) in December 2015, according to the company's annual report.

Deutsche Boerse said it is "cooperating fully" with investigators, and that Kengeter was allowed to buy shares in the company as part his official remuneration program, which was approved by its supervisory board.

Several prosecutors and civil servants from the Hessen state office of criminal investigation carried out searches at the company's headquarters and Kenteger's private apartment in Frankfurt.

LSEG welcomes the strong statement of support by Joachim Faber, chairman of the supervisory board of Deutsche Boerse who has described the allegations related to Carsten Kengeter as without foundation.

"The Chairmen and CEOs of both LSE Group plc and Deutsche Boerse only agreed in the second half of January 2016 to enter into merger negotiations".

Under the programme, he could make a one-off share purchase worth up to 4.5m euros, which he would need to keep until the end of 2019.

The deal to combine the London Stock Exchange (LDNXF) with Deutsche Boerse, which operates the main German stock market in Frankfurt, was announced in February 2016.

Deutsche Boerse's stock has gained around 11% since Mr Kengeter bought the shares.

Financial sources have told Reuters that he started discussing with the rest of the management board possible avenues for growth, including a deal with LSE, right after assuming his position as CEO.

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