Company - - Feb 03,2017
Deutsche Boerse boss Carsten Kengeter has been investigated over trading stock in the company weeks before the declaration of a tie-up with its UK rival.
The Frankfurt apartment of Deutsche Börse chief executive Carsten Kengeter was raided by German prosecutors as well as the company’s offices during a probe into alleged insider share deals ahead of the firm’s planned union with the London Stock Exchange.
It is believed that Mr Kengeter purchased around 4.5m euros (£3.85m) of stock in his own organization. However, Deutsche Boerse countered the allegations by calling the December 2015 purchase part of the remuneration programme.
Chairman of Deutsche Boerse's board Joachim Faber said, these accusations are purely “groundless”. He further added that it was only in the second half of January 2016 when the two chairmen and CEOs agree to initiate negotiations for a merger of LSE Group and Deutsche Boerse.
Mr Faber also focused on the point that Mr Kengeter purchased the shares before an end-of-December deadline fixed by the group's management remuneration programme.
On Thursday, the LSE backed its German counterpart, saying the company welcomes the strong speech of support by Joachim Faber, who has described the allegations linked to Carsten Kengeter as without foundation. It also added that, the organization looks forward to working towards the accomplishment of the proposed merger.
The prosecutor’s office said several prosecutors along with civil servants from the Hessen state office of criminal investigation had searched the company’s headquarters in Eschborn near Frankfurt and Kengeter’s private apartment situated in Frankfurt on Wednesday. The prosecutors highlighted that the searches were “intended to clarify the course of the negotiations until 23 February 2016”.
Mr. Kengeter, who attended the firm’s annual reception in London on Tuesday evening, was nowhere to be seen during the raids.