EU: Deutsche Boerse head denies insider trading as merger looms

Deutsche Boerse chief executive Carsten Kengeter said he was sure that allegations of insider trading against him would prove unfounded, speaking in Frankfurt on Thursday.

The Frankfurt public prosecutor is investigating Kengeter over a multi-million-euro share purchase in December 2015, some two months before Deutsche Boerse announced that it was in merger talks with the the London Stock Exchange (LSE). As a result, the share prices of both exchange operators rose markedly.

Kengeter avoided questions about the possibility of his resignation at Thursday‘s presentation of Deutsche Boerse‘s annual results.

Deutsche Boerse‘s finance executive Gregor Pottmeyer said the planned merger with LSE racked up costs of 66 million euros (70 million dollars) last year for the exchange operator.

A successful conclusion to the deal is expected to cost a total of 150 million euros, he said, in particular due to the performance-related fees of the participating banks.

Last year, the British referendum decision to leave the EU raised questions about plans to base the merged exchange operator in London.

The merger still needs approval from the European Commission and the exchange supervisory authority of the German state of Hesse.

Full Content: Reuters

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